State-owned Emirates Global Aluminium says it will cut 4 per cent of its workforce as part of a restructuring intended to streamline the business.
Emirates Global Aluminium, one of the world’s biggest aluminium producers, says around 250 support jobs will be eliminated, in a move aimed at creating a leaner entity and increasing competitiveness as it looks to expand globally.
The cost cutting is in line with measures that other aluminium companies are taking as they contend with a supply glut that has led to falling prices to around USD 1,741 per tonne.
“The move will enable EGA to maintain and increase its competitiveness as one of the world’s leading companies, supplying high quality metal to over 350 customers worldwide,” the company says in press release.
Emirates Global Aluminium, jointly owned by Mubadala Development Company and the Investment Corporation of Dubai has concluded its first year of operations and announced its 2014 results, which showed that the company has delivered strong financial and operational performance, following the successful completion of the merger of its assets, and completion of its flagship project, EMAL Phase II.
According to the financial results for FY 2014, EGA has achieved sales revenues of AED 19.8 billion — a 30 per cent increase compared to the combined sales of EMAL and DUBAL in 2013 — and net income of AED 3.7 billion — a 75 per cent increase compared to the combined sales of EMAL and DUBAL in 2013.
The results were driven in particular by the successful ramp-up of EMAL Phase II production and a continued focus on cost reduction initiatives.