Joint Venture will support ambitious global expansion plans of the Emirates’ aluminum industry

Mubadala Industry, a business unit of Mubadala Development Company (“Mubadala”), an investment and development company owned by the Government of Abu Dhabi; and Zhenjiang Coking Gas Group Company (“ZCGG”), the largest producer of high quality carbon materials in China, through its subsidiary Jiangsu Surun High Carbon Company (“Surun”), a leading producer of calcined petroleum coke (“CPC”) in China, today announced their joint venture partnership, Jiangsu Suyadi Tancai Company Limited (“Suyadi”), to build a high-quality CPC production facility in Zhenjiang, Jiangsu Province, China.

Building upon Surun’s technical expertise, strong track record and growth aspirations for the sector, the partnership will enable a strategic supply of upstream resources for the production of anodes, a fundamental component of aluminum smelting operations, in the United Arab Emirates (“UAE”). The UAE is building a global metals platform, with approximately 1.8 million tons of primary, high purity aluminum produced annually through Dubai Aluminium Company Limited (“DUBAL”) and Emirates Aluminum Company Limited (“EMAL”). EMAL is a joint venture between DUBAL and Mubadala.

Commercial ties between the UAE and China have been strengthening in recent years, with the UAE becoming China’s second largest Middle Eastern trade partner in 2010. Commenting on the deal, the UAE’s Ambassador to China, His Excellency Omar Al Bitar, said; “The United Arab Emirates and the People’s Republic of China are actively working to conclude a strategic partnership agreement in the coming few months. The signing of today’s agreement, Mubadala’s first industrial venture in China, reflects the strengthening of the growing economic and strategic relationship between the two countries. This year, the UAE Embassy in Beijing has concluded a comprehensive study titled “Investment opportunities in China” in fifteen main domains so, I am extremely pleased at the enthusiastic and supportive approach our Chinese partners have taken, and I wish to congratulate both sides for this important achievement.”

Waleed Al Mokarrab Al Muhairi, Chief Operating Officer of Mubadala, said, “The establishment of Suyadi reflects Surun’s market leadership position and builds on the UAE’s growing relationship with China. It is the first step in the creation of a lasting strategic partnership with Surun, a technical and market leader in the coking industry.”

“As a long term investor, Mubadala forms mutually beneficial partnerships with industry leaders that share our commitment to economic returns, best practice, and knowledge exchange. This joint venture is an important component of our globally integrated portfolio of businesses that support the growth of the UAE’s aluminum industry and we are honored to have Surun as a strategic partner,” he added.

Su Qishan, Chairman and President of ZCGG stated, “We are honored to partner with Mubadala, a company known for its long-term, strategic investments worldwide. As the industry leader of CPC production in China, we have established a reputation for quality processes and products, and are committed to furthering the domestic CPC industry, one that has been steadily growing in importance. This vision is shared by Mubadala, and we will work towards this aim through the mutual exchange of best practices and technical expertise.”

The metals industry in the UAE has been an important contributor to the country’s economic diversification, which sees a growing ecosystem of support businesses and the creation of high-skilled job opportunities for UAE Nationals. The establishment of Suyadi will help strengthen the global competitiveness of the UAE’s aluminum sector by contributing to the long-term security of resources and better integrating the industry into the global metals market.

Based in Zhenjiang, Jiangsu Province, one of the fastest growing industrial cities in China, Surun is an established industry leader, exporting over 400,000 tons of carbon products in 2011. China is the largest producer of anode-grade coking products worldwide, holding more than 40 percent of Green Petroleum Coke production, the main substance used in CPC, and more than 50 percent of CPC production.

Benefiting from the advantageous location and logistical links on the Yangtze River, and Surun’s established technology and supply chain, Suyadi will contribute to Zhenjiang’s domestic production with an annual output target of 500,000 tons of anode-grade CPC. Construction of the facility will commence at the end of 2011, with first production slated for export by the end of 2012.

New integrated control systems will be introduced to ensure that the new plant will have the very highest quality processes and equipment. The plant represents a step forward for the local industry, with all waste heat from the calcining process recycled and delivered to other companies in Dantu Economic Development zone, boosting local circular economy efforts.

The JV contract was signed by Khaled Al Rashedi, Head of Metals at Mubadala Industry, and Su Qishan, Chairman and President of ZCGG. The signing ceremony took place in Zhenjiang and was witnessed by His Excellency Major General Omar Ahmed Al Bitar, UAE Ambassador to China; Her Excellency Noora Mohammed Juma, UAE Consul General, Shanghai; Waleed Al Mokarrab Al Muhairi, Chief Operating Officer of Mubadala; and Mr. Liu Han Dong, Zhenjiang Mayor.

Media Contacts

Tess Chia
Edelman Public Relations
Tel: +86 21 6193 7515
Email: tess.chia@edelman.com

Aya Yassein
Edelman - Mubadala Group Communications
Tel: +971 50 800 8268
Email: aya.yassein@mubadala.com

About Mubadala

Mubadala Development Company (Mubadala) is a catalyst for the economic diversification of Abu Dhabi. Established and owned by the Government of Abu Dhabi, the company’s strategy is built on the creation of partnerships and on long-term investments that deliver strong financial returns and tangible social benefits for the Emirate of Abu Dhabi and that contribute to the growth and diversification of its economy.

Mubadala brings together and manages a multi-billion dollar portfolio of local, regional and international investments and partners with leading global organizations to operate businesses across a wide range of industry sectors. These include semiconductor technology, aerospace, energy, healthcare, information communications and technology, infrastructure, real estate and hospitality, and services ventures. For more information about Mubadala, please visit http://www.mubadala.ae.

About Surun

Jiangsu Surun High Carbon Company (Surun) is a subsidiary of the Zhenjiang Coking Gas Group Company (ZCGG) and one of the leading CPC manufacturers in China since its establishment in 2008. Classified as a National Hi-Tech Enterprise, Surun is known for the advanced technology for its manufacturing process and quality products. Headquartered in Zhenjiang, China, Surun serves customers in China and worldwide, including countries such as the US, Canada, Russia, Australia, France and Japan. For more information on Surun, please visit http://www.jssurun.com.