(MENAFN- Khaleej Times) A foundry is being built in Abu Dhabi's Khalifa Industrial Zone (Kizad) to produce automotive parts for the leading automobile manufacturers, BMW, Volkswagen and Mercedes-Benz.
Abu Dhabi Ports has signed a Musataha agreement with Advanced Manufacturing Solutions LLC (AMS), a subsidiary of the FourWinds Group, to build a Dh514 million worth steel foundry to manufacture automotive parts such as steep brake disks and brake calipers.
The project will be developed in three phases and will ultimately have a capacity of 300,000 metric tonnes per annum, making it among the largest single-source foundries in the world producing automotive parts.
The steel foundry products will cater to both local and international markets, exporting via Khalifa Port, for end use by high-end vehicle manufacturers such as BMW, VW and Mercedes-Benz as well as automotive parts companies, the company said in a statement.
One such company, Continental Teves AG, has entered into an agreement to buy the full output of AMS' first production line to support demand from European markets and its long-term strategy for the region.
Phase one of the foundry, estimated at Dh514 million, will have an installed capacity of 75,000 metric tonnes per annum, and will produce grey iron for brake discs and ductile iron for brake calipers.
Phase two of the project will increase the capacity up to 145,000 metric tonnes per annum while phase three will take the capacity to 300,000 metric tonnes per annum.
Covering 233,000 square metres, the foundry will employ a highly automated process and be one of the most technologically advanced in the word.
Vivek Rao, CEO of FourWinds Capital Management, said: "The FourWinds Group of Companies and its parent company - Tharwa Investments - appreciate the support and dedication of the UAE government and its leadership in paving the way for a successful investment experience in Abu Dhabi."
Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, welcomed the first automotive equipment manufacturer to Kizad.
"The automotive sector in the UAE has been experiencing double-digit growth over the past few years. Having a locally based auto parts and accessories foundry supports this industry and its growth within the emirates and the region," he said.
In addition, the close proximity to Khalifa Port will enable AMS to reach its international customer network quickly and cost effectively, the chief executive said.
"Abu Dhabi Ports is dedicated in providing the necessary support for the successful development of this important project," Al Shamisi said.
The new steel foundry represents one component of a series of investments that AMS plans to undertake in Abu Dhabi.
The FourWinds Group of Companies focuses on projects in infrastructure, industry, natural resources and real estate. The Group has offices in London, Dubai, Kuala Lumpur and Boston and will soon launch offices in Cairo, Amman and Abu Dhabi.
The Group provides project sponsors access to capital, technical expertise and strategic planning, and direct exposure to attractive projects to investors.
FourWinds Capital Management, the financial services and asset management arm of FourWinds Group, announced a $1 billion fund dedicated to infrastructure investments in Egypt, according to its website.
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