Tuesday, 02 January 2024 12:17 GMT

Aluminium Demand Holds Steady As Construction And Infrastructure Drive Growth In Gulf Markets


(MENAFN- Khaleej Times) Global aluminium markets are expanding steadily, driven by sustained demand from construction, transportation and packaging, alongside a wider shift towards lightweight and recyclable materials. Industry analysts forecast continued growth over the coming decade as infrastructure spending rises and manufacturers increasingly adopt aluminium to improve efficiency and reduce emissions. Recycling and low‐carbon production technologies are also playing a growing role in shaping investment decisions across the sector.

In the Middle East, aluminium demand remains closely tied to large-scale infrastructure development and industrial diversification across the Gulf. Market estimates put the regional aluminium market at over $15 billion in 2024, with gradual expansion expected through the end of the decade. Construction, automotive and packaging sectors continue to underpin consumption, supported by access to relatively low-cost energy that has helped sustain primary aluminium production, while downstream and recycling capabilities gain momentum.

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Against this backdrop, UAE-based RMK Industries LLC has entered into a merger agreement to integrate the aluminium composite panel (ACP) operations of International Development Company Metal Industries (IDCMI), a subsidiary of International Development Company (IDC). The transaction brings IDCMI's Aluclad brand into RMK's portfolio, alongside existing brands Alcobond and Cladbond, consolidating manufacturing operations within the architectural façade segment.

Under the agreement, RMK Industries will integrate IDCMI's ACP production, aluminium coil coating and chemical compounding operations, including manufacturing assets, inventories and registered trademarks. From the agreed effective date, RMK will assume operational oversight, with both parties stating that the transition is structured to ensure business continuity and uninterrupted customer supply.

Amir Rashid, managing director of RMK Industries, said the merger supports the group's longer-term strategy to build a vertically integrated manufacturing platform for façade products. He added that the company remains confident in the resilience of the UAE's industrial and construction sectors despite ongoing regional challenges.

The integration expands RMK's multi-brand architectural product portfolio and is expected to enhance its capacity to deliver customised façade solutions at scale, supported by in-house coil coating and chemical compounding. For IDC, the merger is intended to provide long-term operational stability for IDCMI's manufacturing activities within a larger aluminium-focused platform.

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Khaleej Times

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