EGA's Al Taweelah aluminium smelter running at 18%, expects full return in early 2027
Emirates Global Aluminium (EGA) said on Wednesday its Al Taweelah smelter was operating at 18% of capacity and is expected to return to prior output levels in early 2027.
An Iranian strike in March on the 1.5-million metric ton a year plant in the United Arab Emirates (UAE), the largest smelter in the Middle East, led to an emergency shutdown and sent aluminium prices towards four-year highs.
"Hot metal production ... is expected to reach pre-incident levels in Q1 2027," EGA said in an earnings release, adding that it was working to accelerate that timeline after the first cell was restarted on May 26.
The capital expenditure needed to restore production is set to be around $400-million and the strike caused an 84-million dirham ($23-million) dent to EGA's first-half earnings.
"The first half of 2026 was the most challenging period in the long history of EGA," said its CEO Abdulnasser Bin Kalban.
In an interview with Reuters, Bin Kalban and CFO Pal Kildemo declined to say which routes EGA was using to export metal from the Gulf and bring in raw materials amid the closure of the Strait of Hormuz.
Kildemo said using other routes was a "massive logistical operation" but costs were more than covered by higher premiums.
Even before Al Taweelah was hit, EGA was able to receive 100% of inbound materials through other channels, he said.
"Even if the strait doesn't open up next week, next month, or further, we are now (in a) setup where should be able to supply us in all scenarios," he added.
However, EGA will need to strengthen its outbound options in the event that the strait does not reopen, the CFO said.
The UAE firm is also building an aluminium smelter in the US alongside Century Aluminum, where an all-important long-term power supply contract has yet to be secured.
"Negotiation will take time, but we are making very good progress and hopefully will conclude soon," said Bin Kalban.
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