EGA Invests $408M to Revive Al Taweelah Smelter, Partial Production Resumed

Emirates Global Aluminium (EGA) has announced plans to invest approximately AED 1.5 billion ($408.4 million) in the restoration of its Al Taweelah aluminum smelter, which was severely damaged in an Iranian attack on March 28. The attack, targeting the Khalifa Economic Zone Abu Dhabi, necessitated an emergency shutdown of all site facilities.

Currently, EGA has managed to reactivate 227 out of 1,262 reduction cells, restoring 18% of the facility's operations. The company is focused on expediting the recovery process, with expectations to restart normal production levels by the first quarter of 2027.

Basic utilities have recently been reinstated, with an expected increase in the availability of natural gas and electricity as the restart program progresses, according to the company's H1 earnings report.
 

Al Taweelah Plant Ramps Up Post-Incident

The Al Taweelah recycling plant, which began its ramp-up process in February, resumed operations in May following an incident and is currently functioning at approximately 10% capacity. It is anticipated that full production will be achieved by the end of Q4 2026.

In early July, the alumina refinery at Al Taweelah resumed operations following its closure on March 28, swiftly achieving 50% of its usual production capacity. The refinery's ability to further increase production depends on the dynamics of the supply chain and EGA's strategies for acquiring alumina. As EGA works toward full production recovery, it also contends with significant logistical hurdles due to regional conflicts.

In March, the UAE's EGA stopped outbound shipments, causing a buildup of domestic metal inventories. To alleviate this, the company initiated alternative export routes through ports beyond the Strait of Hormuz, significantly boosting its shipment capacity and reducing excess stock. While EGA aims to restore shipment volumes to levels seen before the disruption, its dependency on the Strait of Hormuz is decreasing as it establishes more permanent alternative routes.

During the first half of 2026, EGA reported a substantial 34% rise in adjusted net profit, reaching AED 2.5 billion, up from AED 1.8 billion in the previous year. This increase was attributed to higher aluminum prices, stronger regional premiums, lower alumina costs, and strict cost management.

• The average price of aluminum on the London Metal Exchange climbed to $3,382 per ton, a sharp increase from $2,538 the previous year.
• Revenue fell by 10%, dropping to AED 13.5 billion from AED 15.1 billion, primarily due to reduced sales volumes following the Al Taweelah incident.
• The Al Taweelah incident resulted in a 29% reduction in cast metal production to 1 million tons.
• There was a 32% decrease in total aluminum sales to 939,000 tons.
• EGA is the UAE’s largest industrial company outside the oil and gas sector and the world’s foremost premium aluminum producer.
• EGA contributes about 4% to global aluminum production.
• EGA employs more than 7,000 people worldwide.