Saudi aluminium smelter draws JLR

The construction ofthe world’s largest aluminium smelter in the Eastern province of Saudi Arabia has prompted Jaguar Land Rover to explore the possibility of setting up assembly operations in the Kingdom.

This multi-billion dollar project, which will integrate aluminium mining, refining and smelting in one expansive complex, is a joint venture between Saudi Arabian Mining companyMa’aden and Alcoa, a global leading producer of primary alumina and also one of JLR’s suppliers. When the smelter and rolling mill begins production, scheduled for 2013, it is expected to be the cheapest and most efficient aluminum producer in the world.Given Jaguar Land Rover’s focus on increasing aluminium content in its cars, the Tata Motors-owned British automaker senses a big opportunity in setting up an assembly operation close to this aluminium-producing facility.

Speaking to Autocar India, Tata Motors’ chairman Ratan Tata confirmed: “This smelter could make the production of aluminium in Saudi Arabia very competitive. So taking a really long-term view, if we put an assembly plant there with a large press shop, given our commitment to aluminium in our products, we could have an interesting business case which we are examining today.”



The next-generation Range Rover, set to debut at the Paris Motor Show later this month, is a strong example of the growing use of aluminium in JLR’s vehicles. The SUV, which is lighter by a whopping 420kg than the outgoing model, will be the world’s first aluminiummonocoque SUV, that utilises techniques already developed for the aluminium XK and XJ of sister brand Jaguar. Future ‘high-value’ JLR models are likely to be made the same way. The direct benefits of the increased aluminium content will be seen in fuel economy, emissions, performance and agility of the new models. JLR says the benefits in the new Range Rover will be ‘unprecedented’.

Another benefit from setting up an assembly operation in Saudi Arabia could be to tap new opportunities in the Middle East, Africa and Asia. JLR is looking aggressively at markets outside Europe and is said to be ‘working on plans to extend its global production footprint, particularly in Brazil, India and China’. During the current fiscal year, JLR's cumulative sales have grown by 36 percent to 110,373 units, with markets like China playing a key contributor to the growth, and business in India posting a small but healthy growth too.