UAE plans to build auto parts plant

Abu Dhabi Ports signed an agreement with AMS to build a steel plant for the production of auto parts in the emirates. The plant in the port of Khalifa, in the Qizad industrial zone, will produce products such as brake discs and brake calipers for the global automotive industry.

The steel plant's products will be directed to both local and international markets for end-use by high-quality vehicle manufacturers such as BMW, VW and Mercedes-Benz, as well as the world's leading auto parts companies.

One such company, Continental Teves, entered into an agreement to purchase the full capacity of the first phase of AMS production to meet the demand in its European markets and to implement a long-term strategy for the region.

The Phase 1 Foundry, which is estimated at $ 140 million, will have an installed capacity of 75,000 tonnes per year and will produce gray cast iron for brake discs and ductile iron for brake calipers. Phase 2 of the project will increase the throughput to 145 thousand tons per year, and after the implementation of Phase 3, the capacity will reach 300 thousand tons per year.

The CEO of FourWinds, said: "Our strategic selection of Abu Dhabi as a foundry target is in line with the Group's plans to achieve the highest standards at all levels." The new steel plant represents one component of a series of investments that AMS plans to make in Abu Dhabi, the statement said.


The CEO of Abu Dhabi Ports added: "The automotive sector in the UAE has experienced double-digit growth in the past few years, so the foundry will support the industry with parts and accessories supply locally as well as export markets."