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Abu Dhabi Ports and Advanced Manufacturing Solutions sign Musataha agreement to build one of the world’s largest single source steel foundries
March 30, 2015
Abu Dhabi, UAE: Abu Dhabi Ports has signed a Musataha 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, at Khalifa Port’s Industrial Zone (Kizad).
The new foundry will be developed in three phases and ultimately will have a capacity of 300,000 metric tonnes per annum, making it amongst the largest single-source foundries in the world producing 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 USD 140 million (AED 514 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 2 of the project will increase the capacity up to 145,000 metric tonnes per annum and Phase 3 will take the capacity to 300,000 metric tonnes per annum.
Covering 233,000 square meters, the foundry will employ a highly automated process and will be one of the most technologically advanced foundries 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 will meet top international environmental standards.
Mr. Vivek Rao, the CEO of FourWinds Capital Management stated that ‘FourWinds Group of Companies, 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 M O D Royal Projects Management on this project.’
Mr. 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 that would enable the foundry to be at its level-best in performance, as well as to reach our global customers with ease via Khalifa Port.’
Captain Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports added, “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 in providing the necessary support for the successful development of this important project.”
Advanced Manufacturing Solutions is a subsidiary of the FourWinds group of companies and the parent company Tharwa Investments.
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 unique products.
The new steel foundry represents one component of a series of investments that AMS plans to undertake in Abu Dhabi.