KEZAD, Tubacex to build OCTG-CRA production facility in Abu Dhabi

The facility will enable Tubacex to establish a strong presence in the UAE while reaching out to its global network of clients

by Gulf Business

June 9, 2023

Image credit: WAM

Abu Dhabi’s KEZAD Group, also known as Khalifa Economic Zones Abu Dhabi, has signed a land lease agreement with Spain’s Tubacex Group to develop a production facility for OCTG-CRA tubular solutions, the first such manufacturing facility in the Middle East.

The 50,000m2 facility will enable Tubacex to establish a strong presence in the UAE while reaching out to its global network of clients. The company provides a wide range of stainless-steel tubular solutions for the energy industry and operates as a fully integrated one-stop-shop enterprise.

The production facility is expected to be operational towards the end of 2024. KEZAD said its partnership with Tubacex is aimed at further increasing the localisation and resilience of supply chains.

The deal between KEZAD and Tubacex was signed during the Make it in the Emirates Forum held from May 31 to June 1, 2023, in Abu Dhabi. It signifies KEZAD’s commitment to supporting the national strategy for industry and advanced technology, Operation300bn, which aims to drive the industrial sector’s contribution to GDP, which reached an impressive Dhs180bn.

The deal to build the region’s first OCTG-CRA tubular production facility signifies KEZAD’s commitment to develop the UAE’s industrial sector, enhance the company’s role in stimulating the national economy, raise its contribution to the GDP and strengthen the country’s position as a regional and international industrial hub that attracts industrial investments.

“KEZAD continues to welcome the best-in-class companies to establish their presence in Abu Dhabi, as we drive forward in our aim to become the leading hub in the region for manufacturing and innovation,” said Abdullah Al Hameli, CEO of Economic Cities & Free Zones

“Tubacex’s global leadership in tubular solutions perfectly aligns with our vision for industrial excellence. Our infrastructure and services will help the company enhance its offering and benefit not only the Abu Dhabi industrial ecosystem but the region and the world from its base in KEZAD.”

Tubacex is a global leader in the design, manufacturing, and installation of advanced industrial products and high-value-added services for the energy and mobility sectors. The company operates production facilities in Spain, Austria, Italy, the US, India, Thailand, Saudi Arabia, the UAE, Norway, Canada, Singapore, Guyana and Kazakhstan.

KEZAD draws global players

Meanwhile, the deal with Tubacex is the latest in a string of manufacturing facility agreements that will be developed in the integrated and purpose-built economic zone. UK’s Emtelle signed an agreement with KEZAD in March to build a $50m production facility to manufacture fibre optic ducting and pre-connectors solutions.

The facility will serve as Emtelle’s global hub for its fibre-optic network solutions. It is expected to provide the company with the opportunity to expand its manufacturing capacity of micro ducting, bundled ducting and pre-connectors solutions.

The economic zone signed a 50-year land lease agreement with Al Ghurair Foods for three mega food processing projects involving investments of over Dhs1bn.

Three South Korean companies, Korea Electric Power Corporation, Samsung C&T Corporation and Korea Western Power, also joined forces with the UAE’s Petrolyn Chemie to build a $1bn green hydrogen and ammonia production plant in KIZAD Industrial Area.

KEZAD is a subsidiary of AD Ports Group and its infrastructure and services span 12 economic zones located in Abu Dhabi, Al Ain and Al Dhafra Region covering a total area of 550km2 and includes more than 40 staff accommodation complexes under its subsidiary KEZAD Communities.