Phase 1 of Hana’s new distribution facility has been completed

Hana International FZE, a leading supplier to original equipment manufacturers (OEMs), who are manufacturing vehicles, as well as to the aftermarket, has enjoyed growth of around 30 to 40 per cent per year in just over three years of operations in the Jebel Ali Free Zone.

Established in the free zone in July 2001, it is the sister concern of Automotive and Tractor Spares, England, and London Overseas Trading Company (Lotco) and is part of the multinational group of companies, The Make Group.
The Group’s core focus for the last five decades has been the sourcing and distribution of premium-quality spare parts especially critical engine components, transmission gears, differential parts and hydraulic pumps for diesel engines, agricultural tractors and commercial vehicles.
Lotco, even before Hana, was a leading supplier to OEMs and the aftermarket. Both supply to markets in 42 countries under the Automotive and Tractor Spares (ATS), England, brand name.
Although Hana focuses mostly on agricultural markets, the Board chose Jebel Ali Free Zone, Dubai, as a location for the new distribution centre for a number of reasons. The shorter shipping transit times enables Hana to provide faster deliveries and quicker service to customers in Asia, the Middle East, Iran and Africa, especially OEM clients who require reliable just-in-time deliveries to their vehicle production lines. The strategic location also allows Hana to more effectively target key nearby markets in the region, whilst the comparatively low overhead costs allow Hana to operate more economically.
The company has succeeded in breaking into a number of Middle Eastern and African markets. As well as strong growth in the OE sector, this reflects the ever-increasing popularity of the ATS England brand, which has a unique standing in the market as being the first replacement brand that offers parts of even higher specifications than original OEM brands, but at competitive prices. This is despite ferocious competition in the agricultural tractor parts sector.
Chairman Majid Sheikh attributes Hana’s success to the unique value proposition of the ATS England brand that it distributes. “The ATS brand is the culmination of over 30 years of sourcing expertise and we have a unique approach,” he observed. “Whereas the market trend is to compromise on quality to compete on price, ATS is probably the only replacement brand that is making a stand on quality. We have actually enhanced the quality of our products, even exceeding original equipment manufacturer specifications on many product lines by using higher-grade materials and incorporating superior technical designs - offering users parts that last longer with better performance.
“Our commitment to quality has generated a lot of trust and goodwill towards the brand from our growing customer base. And at the same time, as a lean organisation, with controlled overheads, we offer ATS parts at much more competitive prices than OEM brands.
”The advanced facilities, strong infrastructure and ease of operation that Jebel Ali Free Zone offers have certainly facilitated our growth.”
With the growth and excellent potential of the ATS brand together with confidence in the infrastructure and port facilities provided by the Jebel Ali Free Zone Authority, Hana has invested very heavily in a new purpose-built distribution facility on 150,000 sq ft land. Phase 1 of the multimillion-dollar project has just been completed comprising a warehouse and a two-storey office including a dedicated showroom, which Hana will aim to use as a marketing base for continued expansion.
Within the last year, Hana has already participated in three major international automotive exhibitions including most recently the prestigious Automechanika exhibition in Frankfurt, Germany, in September 2004, where they enjoyed an excellent response. Hana has also appointed a number of local liaison agents in various countries to help expedite business on the ground.