UAE firm seeks investors for US$6bil US plant


Mitsubishi Corp is among the prospective investors and discussions between the two companies are at an early stage. — Bloomberg

DUBAI: Emirates Global Aluminium (EGA) is looking for equity partners for its planned aluminium plant in the United States.

According to people familiar with the matter, the aluminium producer, one of the world’s largest, is in talks with potential investors for a smelter it plans to build in Oklahoma. It’s unclear how much EGA aims to raise. 

Mitsubishi Corp is among the prospective investors and discussions between the two companies are at an early stage, said one of the people. Spokespeople for EGA and Mitsubishi declined to comment.

EGA, which is owned by Mubadala Investment Co of Abu Dhabi and Investment Corp of Dubai, hired Evercore Inc as financial adviser, according to an investor document.

A spokesperson at Evercore hasn’t responded to a request for comment.

President Donald Trump has been pushing for foreign investment to bolster jobs and industry, including commitments from Gulf states.

Trump also required Japan’s Nippon Steel Corp to spend billions of dollars to secure its takeover of United States Steel Corp.

The EGA plant is expected to require US$5bil to US$6bil of capital investment and produce about 750,000 tonnes of primary aluminum a year, according to the investor document. The project is known internally as “EGA Inola,” said one of the people.

EGA announced its intention to build the plant in May, as part of a broader investment pledge by the United Arab Emirates.

Aluminium prices have surged this year after Trump raised tariffs, saying he wanted to reduce the United States’ reliance on foreign supplies.

Instead, the levy has thrown the local market into disarray, disrupting the integrated North American metals supply chain and driven up costs for consumers.

EGA’s search for equity partners also comes as competition for electricity intensifies in the United States, as the boom in data centres requires a massive consumption of power to run artificial intelligence.

Power accounts for more than half the cost of producing aluminium. EGA has said construction of the Oklahoma plant depends on securing “a competitive long-term” power agreement.

Construction is slated to start in late 2026, with initial metal production expected by the end of the decade, according to the investor document. 

If built, the Oklahoma smelter would help reduce US reliance on imported aluminium – the country depended on imports for about half of its aluminium consumption last year, according to the US Geological Survey. — Bloomberg

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