Abu Dhabi Ports has signed an agreement with Advanced Manufacturing Solutions LLC (AMS), a subsidiary of the FourWinds Group of Companies, to build a state-of-the art steel foundry producing automotive parts such as steep brake disks and brake calipers for the global automotive industry.
The foundry, to be set up at Khalifa Port’s Industrial Zone (Kizad), will be developed in three phases and ultimately have a capacity of 300,000 tonnes per annum, making it one of the largest single-source foundries in the world for automotive parts.
The steel foundry products will cater for both local and international markets, exporting via Khalifa Port, for end use by the world’s largest, high-end vehicle manufacturers such as BMW, VW and Mercedes-Benz as well as world-leading automotive parts companies. One such company, Continental Teves AG, has entered into an agreement to buy the full output of AMS’s first production line to support Continental’s demand from its European markets and its long-term strategy for the region.
Phase 1 of the foundry, estimated at $140 million (DH514 million), will have an installed capacity of 75,000 tonnes per annum and produce grey iron for brake discs and ductile iron for brake calipers.
Phase 2 will increase capacity to 145,000 tonnes and Phase 3 will take it to 300,000 tonnes per annum.
Covering 233,000 sq m, the foundry will employ a highly automated process and be one of the most technologically advanced facilities of its kind in the word. Managed and operated by a highly qualified and trained team of experts, the foundry will align its production to the highest quality levels and meet top international environmental standards.
Vivek Rao, the CEO of FourWinds Capital Management, stated that the FourWinds Group and its parent company, Tharwa Investments, highly appreciate the support and dedication of the UAE government and its leadership in paving the way for a successful investment experience in Abu Dhabi. “We are also very proud of our local partnership with MOD Royal Projects Management on this project,” he said.
Rao added that “our company’s strategic choice of Abu Dhabi and Kizad as the target location of the foundry falls within the group’s quest to achieve the highest standards at all levels. For us, Kizad represents the perfect location that offers superior quality services and infrastructure, enabling the foundry to be at its level-best in performance and reach its global customers with ease via Khalifa Port.’
The FourWinds Group of Companies was founded in 2005 as a specialised group focusing on investments and 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. It employs a global team of dedicated professionals with extensive sector-specific knowledge and experience.
FourWinds provides project sponsors access to capital, technical expertise and strategic planning, and offers investors direct exposure to unique and attractive projects.
The steel foundry falls within the FourWinds Group’s strategic direction to focus investments on industries that offer added value and use the latest technologies to meet market demand for
The new steel foundry represents one component of a series of investments that AMS plans to undertake in Abu Dhabi.
PORT, AN EXPORT CHANNEL
The new plant’s exports will be greatly helped by the modern port facilities that Khalifa Port offers.
Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports, said, “Abu Dhabi Ports is pleased to welcome its first automotive OEM (original equipment manufacturer) to Kizad. The automotive sector in the UAE has been experiencing double-digit growth over the past few years, and having a locally based auto parts and accessories foundry, supports this industry and its growth within the emirates and the region. In addition, the close proximity to Khalifa Port will enable AMS to reach its international customer network quickly and cost effectively. Abu Dhabi Ports is dedicated to providing the necessary support for the successful development of this important project.”
Established in 2006, Abu Dhabi Ports’ core objective is to facilitate the diversification of the economy by stimulating trade and development. This is done by delivering high-quality maritime services, supporting partners’ infrastructure projects and setting up new companies and joint ventures in the ports and logistics sectors.
The flagship state-of-the-art Khalifa Port and Khalifa Industrial Zone play a big role, supporting the diversification of the economy. Khalifa Port was inaugurated in December 2012 by the UAE President, HH Sheikh Khalifa bin Zayed Al Nahyan. The port’s semi-automated container terminal handles all of Abu Dhabi’s container traffic, after its transfer from Zayed Port, the historic port in the city centre.
Phase 1 of Khalifa Port has a capacity of 2.5 million teu and 12 million tonnes of general cargo. Further phases of development will occur as market demand requires. When all phases are complete, Khalifa Port will be able to handle 15 million teu and 35 million tonnes of general cargo per year.