Reuters reported that world demand for aluminum will double in the next decade driven by growing use in aircraft, transportation and luxury cars.

Mr Gerhard Falch CEO of Austrian aluminum group said that “We forecast that demand for aluminium will double within the next 10 to 12 years, so a global growth rate of 7 per cent. This is a nice picture. Demand for its products has put the company on target to match or beat 2010's record year for earnings. At least we will be in line with the results of the record year of 2010.”

Earnings before interest, taxes, depreciation and amortization were EUR 139.0 million last year. Amag, capitalized at USD 865.35 million following an April listing in Vienna, makes semi finished aluminum products out of speciality alloys used in BMW motors, aircraft, skis, construction and Bentley and Rolls Royce cars. It also holds a part stake in an hydro electric aluminum smelter in Canada.

Around 85% of the group's products are for export, the lion's share to Western Europe. It is also working to raise market share in Eastern Europe as well as in China and India. Per capita aluminum consumption in Europe and the US stands at 5 to 8 times that of emerging markets. Their catching up is expected to be a key driver of demand growth.

Mr Falch said that this year, Amag expects global consumption of primary aluminium to rise 9 per cent to 44.6 million tonnes and that for flat rolled products to increase 8% to 20.0 million tonnes. From the aircraft sector, demand is seen rising 9.1% followed by transportation sector growth ships and railways by 8.0% and engineering and construction growth at 5.6%.

He said that growth in our results has come on one hand from the primary aluminium side and on the other side it is the demand for high quality alloys for an increasing range of applications.

(Sourced from Reuters)