Emirates Global Aluminium says to cut 4 pct of workforce
ABU DHABI, June 11 (Reuters) – Emirates Global Aluminium (EGA) on Thursday said it is cutting its workforce by 4 percent as part of a strategic restructuring to reduce costs and boost operational efficiency.
EGA was created by the merger of two state-owned aluminium companies — Dubai Aluminium (Dubal) and Abu Dhabi’s Emirates Aluminium (Emal) — to create what was at the time the world’s fifth largest aluminium company with an estimated value of $15 billion.
The move, which would see around 250 support positions cut, is aimed at creating a leaner entity and increasing competitiveness as it looks to expand in the UAE and abroad, EGA said in a statement.
EGA is jointly owned by Abu Dhabi’s investment fund Mubadala and the state company which holds Dubai’s most high-profile assets, Investment Corporation of Dubai (ICD).
“This initiative strengthens EGA by fully integrating and streamlining support functions across the company to continue supporting our operational success and positions us for further growth,” Abdulla Kalban, EGA’s managing director & CEO said in the statement.
Last month Kalban said EGA’s exports would fall to 77 percent of its production by 2017 due to a rise in local demand. It currently exports around 88 percent of its output
EGA is building a $3 billion alumina refinery in Abu Dhabi, which is expected to be operational by end-2017 to produce four million tonnes per annum (mtpa) annually over two phases.
EGA produces 2.4 mtpa (combined production of Dubal and Emal). It also owns Guinea Alumina Corporation, a bauxite mine and alumina refinery project in west Africa.
(Reporting by Stanley Carvalho; Editing by David French)