Due to ongoing shipping disruptions in the Strait of Hormuz, the UAE state-owned aluminum producer will export up to 250,000 tonnes of aluminum annually from the country's east coast.

Under a new agreement between Emirates Global Aluminium and logistics firm Gulf Terminal Company, port facilities will be expanded to accommodate the additional export volume, with export levels potentially exceeding 300,000 tonnes after the first year.

Gulf Terminal Company operates the Port of Khor Fakkan on the Gulf of Oman, which is located outside the Strait of Hormuz.

The agreement indicates that after months of taking temporary measures to mitigate the impact of shipping disruptions in the Strait of Hormuz, smelters in the Gulf region are making structural adjustments to their supply chains.

A closure of the Strait of Hormuz would threaten aluminum supplies to buyers in Asia, Europe, and the United States, and smelters have already increased exports through alternative ports in Oman and Saudi Arabia.

Emirates Global Aluminium CEO Abdulnasser Bin Kalban said in a statement: "We have made significant progress in diversifying our logistics and export routes, ensuring stable deliveries. This agreement with Gulf Terminal Company is another important step forward."