Abu Dhabi Ports — the “master developer” of ports and industrial zones in that Persian Gulf emirate — announced that it has signed an agreement with Advanced Manufacturing Solutions (AMS) for the latter to develop an iron foundry at the Khalifa Port Industrial Zone (KIZAD.)
The development contract is described as a “musataha,” a legal concept that grants time-limited rights to build and develop property without taking ownership. The Khalifa Port is Abu Dhabi Ports' flagship, deep-water, described as “the gateway to Abu Dhabi,” conceived to handle up to 35 million metric tons/year of container traffic.
The schedule for the three-phase, $140-million development was not announced. It is expected to be one of the world’s largest single-source steel foundries, though design details were not released
FourWinds Group of Companies is a portfolio of investment funds and operational holdings.
The foundry will produce castings for local and international markets, exporting via Khalifa Port for automakers in the region, including BMW, VW, and Mercedes-Benz, according to a statement. Automotive brake specialist Continental Teves AG reportedly has agreed to buy the full output of AMS’s first production line, for regional and EU supply requirements.
Covering 233,000 sq.m., the foundry would incorporate a high degree of process automation, say the developers. The first phase of the foundry will have a capacity of 75,000 metric tons/year of gray iron for brake discs and ductile iron for brake calipers.
Phase 2 would increase the capacity to 145,000 metric tons/year, and Phase 3 would raise output to 300,000 metric tons/year.
Vivek Rao, the CEO of FourWinds Capital Management, stated: "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."