The Abu Dhabi Ports has signed a Musataha Agreement with Advanced Manufacturing Solutions (AMS), a subsidiary of the FourWinds Group of Companies, with regards to the construction of a steel foundry at Khalifa Port’s Industrial Zone (KIZAD).
Once completed, the new facility will have a production capacity of 300,000 metric tonnes per year which includes the production of automotive parts specifically brake calipers and steep brake disks. The project will be in three phases, and will likely consider one of the biggest single source steel foundries in the world.
In the first phase, the works cost is around $140 million or AED514 million, and is expected to produce 75,000 metric tonnes per annum. The facility’s production will meet local and international demand for steel.
According to the CEO of Abu Dhabi Ports, having a locally based auto parts and accessories foundry will back up the automotive sector and its growth within the Emirates and the region as the industry for automotive has been enjoying a significant growth for the past few years.
Furthermore, the proximity of the new facility to Khalifa Port will be an advantage to the Abu Dhabi Port’s partner to quickly and economically get through to its international customers.
Some high-end vehicle manufacturers have already expressed their interest about the new facility.