Construction starts on new tyre plant in Abu Dhabi
According to an announcement by Abu Dhabi Ports construction has started on the United Arab Emirates’s first tyre-manufacturing plant in Khalifa Industrial Zone Abu Dhab (Kizad). Developed by Chinese tyre manufacturer Roadbot with a total investment of USD 614.37 million, the factory is being built in Kizad’s China-UAE Industrial Capacity Cooperation Demonstration Zone and is expected to be fully operational by October 2020. The factory will have an initial annual production capacity of three million passenger car radial (PCR) tyres and one million truck and bus radial (TBR) tyres, with production of PCR tyres increasing to 10 million by 2022.
The development comes at a time when Chinese companies are investing heavily in the UAE. The economic relationship between the two countries was recently strengthened with the inauguration of the CSP Abu Dhabi Terminal at Khalifa Port positioning Abu Dhabi as the regional hub for Chinese firm Cosco’s global network of 36 ports. The deal further connected the emirate to the major trade hubs along the Belt and Road Initiative. Currently, global automotive brands such as Toyota, Jeep, Dodge, Fiat and Honda operate volumes out of Kizad’s automotive cluster.