Gulf Extrusion (pictured) has teamed up with Adbic to set up the Taweelah Extrusion Company (Talex)

Gulf Extrusion (pictured) has teamed up with Adbic to set up the Taweelah Extrusion Company (Talex)

Kizad signs up 40 investors

The industrial zone bids fair to become a powerhouse and capture a sizeable share of Abu Dhabi’s non-oil and gas GDP

01 December 2013

Khalifa Industrial Zone Abu Dhabi (Kizad), which has allocated an area of 418 sq km, roughly two thirds the size of Singapore, to house companies within a range of industrial clusters, has brought on board some 40 national and international investors who are now constructing their facilities, it says.

Most well-known among firms operating is the aluminium cluster’s anchor tenant Emirates Aluminium (Emal), which is in the process of expanding its production capacity to 1.3 million tonnes a year by mid-2014. Kizad has, in recent months, signed several long-term lease agreements with investors, one of the latest among them being Spinneys to whom a land plot of 284,688 sq feet has been allocated in the logistics cluster where the company will set up a temperature-controlled distribution centre to store products from multinational consumer goods manufacturers prior to their distribution to retail outlets across Abu Dhabi and Al Ain.

The Spinneys lease comes more than a year after Al Batha Trading and Industry Group became the first logistics cluster tenant. Al Batha is using its premises to set up cold stores and warehouses to store and distribute pharmaceuticals, food and beverages and other goods.  And earlier this year IBR Group was welcomed as the first tenant specialising in third-party logistics.

Also recently, Kizad announced the launch of its Mumbai office, its first overseas branch which it said was a response to a vast amount of enquiries from Indian businessmen. “Investors moving to Kizad will not only have the UAE as a new market, they will also be able to access the whole Pan-Arab region,” Kizad officials said at a meeting in Mumbai. Kizad CEO and managing director engineer Khaled Salmeen added: “We’re looking forward to refine (industry) sectors and provide the best possible platform to welcome Indian investors to Kizad.”

At a recent investment forum in Abu Dhabi, Salmeen said Kizad would play a vital role in reducing reliance on non-renewable energies and contribute 15 per cent of Abu Dhabi’s non-oil and gas GDP by 2030.

Towards that end, Kizad has succeeded in bringing on board a diverse range of companies. In October, the industrial zone announced the signing of a long-lease agreement with Emirates Calcium Carbonate Factory (ECCF), the largest manufacturer of the product in the UAE. ECCF is setting up a plant to produce and distribute calcium carbonate products to oilfield industries across the region. Calcium carbonate can also be used in steel production, the manufacturing of paper, paints and dyes, water and industrial waste treatment, sugar extraction and the reduction of acidity of soil used for agriculture.

Kizad has also signed up Sao Paulo-based Brasil Foods, KSB of Germany and the local aluminium extrusion firm Talex.

Khalifa Port, which will serve Kizad businesses

Brasil Foods is South America’s largest food processing company and the producer of the frozen foods brand Sadia. The company is investing Dh535 million ($145.6 million) in the food manufacturing cluster to produce meat products, marinated processed foods and other bread-based items. Salmeen said the Kizad food cluster was a means towards increasing food production and slashing dependence on imports.

For its shipping needs, Brasil Foods, like many other manufacturers in the industrial zone, will be well served by proximity to Khalifa Port, which operates under Abu Dhabi Ports Company (ADPC). A master developer of ports and industrial zones, ADPC recently won the Lloyd’s List “Port Operator of the Year” award at the Lloyd’s List Middle East and Indian Subcontinent Awards.

KSB, one of the world’s leading suppliers of industrial pumps, valves, related systems and services, has begun building a facility in Kizad, which will be one of its biggest service centres worldwide

Talex, the Taweelah Extrusion Company, has made a Dh735 million investment to lease a 200,000 sq m plot in the aluminium cluster to produce high-end extrusion products for the specific needs of automotive markets. Talex chairman Jamal Salem Al Dhaheri said the firm would place the UAE at the forefront of the extrusion industry and further contribute to the diversification plan as set out in the Abu Dhabi Vision 2030. Talex is a joint venture partnership between Abu Dhabi Basic Industries Corporation (Adbic) and Gulf Extrusions.

Emal’s close neighbours, Ducab Aluminium and Cast Aluminium Industries (CAI), the midstream aluminium producer and recycler, expect to capitalise on their presence in Kizad. “Recycling is not a common initiative in the industrial business, therefore securing CAI as a partner in waste-recovery management changes the nature of this business in the UAE. By encouraging this, Kizad is also working towards two of our Economic Vision’s core pillars of economic and environmental sustainability,” said Salmeen.

Ducab Aluminium, a JV between Ducab and Senaat, has invested Dh220 million to produce 50,000 tonnes of electrical conductive grade and aluminium alloy rods, wires and bare overhead conductors, which have markets in the GCC region and Asia. Some 15-20 per cent of the output will serve local markets. The plant will be integrated with Emirates Aluminium from where it will source its hot metal as well with Ducab, which will use some of the rods to complement Ducab business.

Construction of the plant is to begin early next year and completion will occur in 2016.

Among other ventures, Kizad has granted Al Braik Investments approval to reserve a 3.4 million sq ft plot to build the Middle East’s first silicon metal smelter. Talah Board, a UAE-based company, has signed up to produce unique construction boards out of waste from date palm trees. Binos, the German developer and manufacturer of machines, components and technologies for the wood- and mineral-bonded board industry will supply machines for the facility.

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