The company responsible for the Mine to Casting operation is a joint venture between Ma’aden and Alcoa.
Ma’aden Aluminum is a key part of the wider Ma’aden operations, delivering value for the company, Saudi Arabia, customers, and investors. We are a major contributor to Saudi Arabia’s GDP and job creation, and an important enabler of the local downstream industries. Our cutting-edge, integrated aluminum complex supplies high-quality aluminum solutions to customers in both local and international markets.
Our integrated aluminum value chain is the largest in the Middle East and one of the largest in the world with assets of over SAR 42 billion. We have a strategic focus on operational, capital, and commercial excellence to enable our aluminum business to remain competitive in the face of rising raw material costs.
Operational activities include:
Aluminium Smelting/Casting: We have a focused effort on value-add castings (slabs and billets) and currently successfully operate our smelter at the highest amperage in the Aluminium Pechiney (AP club) of similar technologies.
Aluminium Rolling Mill: Ma’aden operates astate-of-the-art facility focusing on Can Body, End and Tabs & Auto Sheet. In addition, we recycled > 20% of post-consumer scrap using our Can Reclamation Unit (CRU).
Bauxite Mining: We are the only operator within the Gulf with local in-kingdom resources and reserves of Bauxite.
Alumina Refining: Using the Bauxite mined locally, we refine our alumina, in a state-of-the art high-temperature refinery.
2021 saw the market recovering and a growth in demand as major economies recovered the ground lost during the 2020 pandemic. However, the global economy has still not yet regained pre-pandemic levels, suggesting that there is room for further growth.
The global economy remains fragile, and towards the end of the year had to balance the twin threats of the rise of new Covid 19 variants and inflationary pressure. This has resulted in weaknesses in some sectors, for instance, construction – with the slowdown of the Chinese construction market a particular concern. However, other sectors have proved more resilient, particularly packaging, electric vehicles, and renewable power. Aluminium stock levels have depleted over the year and the market has moved into a deficit. This has, in turn, supported higher price levels, with demand for Aluminium outstripping supply resulting in higher prices. The outlook also remains positive due to the depletion of stock levels and supply shortfalls. Despite some uncertainty around demand, the supply/demand balance is expected to continue supporting higher price levels as we move into next year.
In response to the COVID-19 pandemic in 2020, Ma’aden Aluminum implemented stringent measures to protect the company’s workforce, prevent infections, mitigate impacts, and ensure business continuity. Due to these actions, Ma’aden Aluminium has continued to operate without any disruption and has been well-placed to take advantage of the continuing recovery in 2021.
The key factors that support our position in the market are the quality and range of our products and the quality and experience of our staff – a team of highly skilled employees, that offers a blend of global experience and local knowledge.
Our product range also assists us in building a level of resilience, which will support our future ambitions. Throughout 2021, we have continued to innovate and bring new product lines onstream – such as the introduction of 6” Billets. This has supported us in moving into new markets globally, whilst retaining and growing strategic market share within our existing customer base.
Auto sales and Can Body Stock saw an average sales increase of approximately 10% during 2021. However, there was a 5% reduction in cansheet sales. These were due to plant reliability challenges caused by the pandemic. Underlying demand for cansheet remained strong throughout period.
Our continuing production of Slabs, Billets, Ingots, and the introduction of the new diameter 6” Billets to the local market have placed us on the path for further growth as market demand increases. Notable achievements this year have included:
Ma’aden’s Board approved Ma’aden’s overall ESG Strategy to achieve Net Zero Emissions by 2050.
In June 2021, Ma’aden Aluminum (MA) obtained ASI Performance Standard (PS) and Chain of Custody (CoC) certificates which demonstrate in a credible way that the business upholds the highest environmental, social, and ethical standards.CoC links MA practices to their products. This link starts with bauxite or recycled aluminum and continues right through each step of the supply chain to end users. In this way, responsible sourcing is linked to responsible production.
In August 2021, MA began selling Can Body product that is certified by the Aluminum Stewardship Initiative (ASI). We sold around 25,600 tons of this product. We anticipate enlarging our offer of sustainable products in 2022.
Ma’aden is aligned with ASI’s sustainability priorities which have high-level challenges for our global future. These include targets around the natural environment, and protecting human rights.
Ma’aden Rolling Company (MRC) achieved ISO 45001:2018 (Occupational Health & Safety Management System) certification at the start of the year.
MRC was awarded to supply commercial volume to Jaguar Land Rover (JLR) for its new 2022 Range Rover Sport model. Ma’aden was awarded the highest share of aluminium inner parts in the vehicle.
Ma’aden Rolling Company (MRC) started production to supply flat rolled products to Nissan for use in its USA Rogue 2022 model.
MRC extended its coated end stock customer portfolio by commencing commercial supply to European customers through a relationship with Ball Ireland.
We continue to explore investing in new facilities using the most current available technologies. This will help us achieve our wider sustainability goals, increase our output, and maintain our competitive production costs.
We also continue to target and move into new markets, whilst consolidating the very strong market position we have in the Middle East and North Africa.
2020 was a challenging year for the industry, but we maintained strong sales levels and achieved record production. 2021 saw a recovery in demand and price levels. As a result of our strong business fundamentals, Ma’aden was well positioned to benefit from the recovery.
