A Chinese firm and an investment group headed by UAE and Malaysian entrepreneurs have entered into a joint venture agreement to build an aluminium smelting plant in Malaysia. The joint venture partners are Aluminium Corporation of China (Chinalco) and Gulf International Investment Group (GIIG) Holdings, which is headed by Malaysian entrepreneur Tan Sri Syed Mokhtar Al Bukhary and UAE-based business leader Mohammed Alabbar. First-phase capacity The $1.6 billion plant, which will have an annual capacity of 370,000 tonnes in the first phase, is to be set up at the Samalaju Industrial Park in Sarawak state. The plant will be developed, owned and operated by Smelter Asia Sdn Bhd. On further availability of power from the grid, the plant capacity is planned to be increase to 700,000 tonnes. Present at the signing of the joint venture agreement were Chinese premier Wen Jiabao and Malaysia Prime Minister Dato Sri Najib Razak. Demand growing Commenting on the joint venture with Chinalco, Al Bukhary said: 'The global demand for aluminium is projected to grow by an average of four per cent over the next five years with Asia driving demand. Our strategic collaboration with Chinalco for Smelter Asia will bring the best-in-class technology to create a modern aluminium plant that will contribute to the socio-economic growth of Sarawak state. Alabbar said Smelter Asia was a powerful example of global collaborations to create a dynamic socio-economic growth engine for Malaysia. Zhang Chengzhong, deputy general manager of Chinalco, said the joint venture agreement marked a significant milestone in the course of project development.
