Strategic Mind-mapping Approach for Sustainable Business Practices with reference to the Aluminium Smelters in the Middle East and GCC

The study uses mind-mapping approach to analyse and understand the prospects of business practices for the sustainable operation of Aluminium smelting industries in the GCC and middle-east. The study also recommends some strategy change towards higher profitability and long-term viability of the Aluminium smelters.The structural underpinning of the mind-map is based on the annual report of the Gulf Cooperation Council (GCC) and the article of Kearney research. It is understood that there is an inadequacy of skilled labour in the Aluminium sector of GCC countries. Almost 40% of industry participants face shortage of skilled labour. It is highly necessary for the Gulf countries to develop a local skill base to reduce the cost of outsourced labour.The access to raw material, especially bauxite, has been tough in recent days because of the cartelization of the mining companies and increased bargaining. An immediate step needs to be taken by the Aluminium smelters to gain easy access to the bauxite through acquisitions or long-term deal. GCC industries have a competitive advantage over the competitors from the rest of the world in terms of cheaper electricity cost. Being the Crude Oil heaven of the world, GCC countries have almost 1/3^rd of refining and production costs. The GCC smelters has adopted sustainable approach of Aluminium production to cause minimal impact on the environment. EGA report says that GHG gas emission was 38% lower than the industry average in September 2020. In terms of market scenario, the primary consumer of Aluminium sheet, bars are Construction and Automobile sectors. Together they constitute almost 85% of the consumption of the products of GCC smelters. Also, Aluminium has a high usage in secondary market and the Aluminium scrap industry has grown in the middle-east sideways. The strategies to improve the business involve the cost-cutting approach in terms of doing away with costly steps such as cooling, re-melting has proven a viable solution for the smelters in this region. Restructuring the marketing and operating strategy can cut down supply cost by 8-12% and the inventory cost by 25-35%. It is noted that higher economic and business profit can be accrued from shifting towards the downstream value chain involving extruding, casting and transformation activities. Additional scope of cooperation can be given as co-sourcing the raw materials and factory spares, collaborative logistic and warehousing ventures, mutual transfer of industry practices.