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Oman's Sohar Aluminium says may feel knock-on effect from U.S. tariffs

Published 12/03/2018, 12:20 am
Updated 12/03/2018, 12:30 am
© Reuters.  Oman's Sohar Aluminium says may feel knock-on effect from U.S. tariffs
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DUBAI, March 11 (Reuters) - Sohar Aluminium, one of the largest producers of the metal in the Middle East, said on Sunday that it may feel some knock-on effect from tariffs on aluminium imports imposed by the United States.

U.S. President Donald Trump set import tariffs on Thursday of 25 percent on steel and 10 percent on aluminium, to come into force in 15 days, a move that has raised concerns about a global trade war. Aluminium, jointly owned by Oman Oil Company, Abu Dhabi National Energy Company TAQA.AD (TAQA) and Rio Tinto RIO.L , said it will not be directly impacted by the tariffs as it did not currently have any direct exports to the U.S.

"However, there may be knock-on effects if other big GCC [Gulf Cooperation Council] producers who do ship to the US change their marketing strategies and impact regional markets in which we are active," Jerry Van Alphen, chief financial officer of Sohar Aluminium, in an emailed statement

"We may also feel some knock-on effect if our downstream customers are impacted," he said.

Separately, Al Jazeera Steel Products ATMI.OM , another Omani company, said it was following the proceedings closely and working with its legal counsel for possible preventative measures.

"The company due to its diversified market spread, and product portfolio does not expect any significant impact in their international business volumes," it said in a bourse statement on Sunday.

Another regional aluminium producer, Emirates Global Aluminium (EGA), said on Friday it would continue working with U.S. customers to support their businesses.

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