AMSTERDAM, Netherlands, July 27, 2015 (GLOBE NEWSWIRE) -- (Regulated Information) --- AMG Advanced Metallurgical Group N.V. ("AMG") is pleased to announce that it has signed an agreement with Al Braik Investments LLC ("ABI") to develop an advanced silicon metal smelter to be located in KIZAD, Abu Dhabi, United Arab Emirates ("SIMA Project").
The SIMA Project is expected to be the first silicon metal smelter built in the fast growing Gulf Cooperation Council ("GCC") market. Silicon metal demand in the Middle East is currently 70,000 tons per annum, and is expected to exceed 250,000 metric tons per annum by 20251.
Under the terms of the agreement, AMG and ABI are conducting due diligence including finalizing the feasibility study, commercial agreements, project financing and technical specifications prior to making a final investment decision in mid-2016.
The opportunity to expand AMG's existing silicon metal business is in line with AMG's strategy to expand its presence in high growth critical material markets. Dr. Heinz Schimmelbusch, Chief Executive Officer of AMG, stated, "We are delighted to work with ABI to expand AMG's Critical Materials business in the Middle East. ABI's close industrial and governmental ties and expansive network within the region combined with AMG's existing operational know-how, strong customer relationships and knowledge of the European and global markets related to silicon metal provide an excellent framework for success".
Shukri Al Braik, Chairman of ABI stated: "We are pleased to finally see SIMA come to fruition thanks to the strategic tie up with our world class partner, AMG. Together we plan to cement our first mover advantage and unlock significant value for the region and our companies alike".
1) Source: CRU, Silicon Metal Market and Competitive Analysis Study: A Focus on the Middle East, April 2013.