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UAE’s first auto plant opens in RAK

DUBAI — The UAE’s first automobile assembly plant, which marked a defining moment the country’s industrialisation drive, was inaugurated on Thursday by His Highness Shaikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah.

The state-of-the-art plant set up at the Al Ghail Industrial Park in Ras Al Khaimah, is a joint venture between the Ashok Leyland, the flagship company of Hinduja Group of India, and the Ras Al Khaimah Investment Authority, or Rakia.

The joint venture, inked in 2006 with a phased investment outlay of $50 million, has implemented the initial phase at an investment of $20 million.

Dedicating the hi-tech plant at a ceremony, Shaikh Saud said the new facility was a testimony to the growing partnership between UAE and India.

“It is a partnership that has existed for centuries, that is rooted in a common tradition and the shared values of Asia. We are proud to be partners in growth with a world class organisation like the Hinduja Group and I look forward to see many more products and opportunities being created out of this partnership,” he said.

The inaugural function took place in the presence of Shaikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah, Shaikh Nahyan bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research, and Shaikh Ahmed bin Saeed Al Maktoum, Chairman of the Emirates Airline and Group and Chairman of Dubai World.

Also present were Shaikh Omar bin Saqr Al Qasimi, Chairman of RAK Airways, Shaikh Salem bin Sultan Al Qasimi, Chairman of RAK Civil Aviation, M K Lokesh, Indian Ambassador to the UAE, and other dignitaries from the Hinduja family and senior management of Ashok Leyland.

Speaking to Khaleej Times on Wednesday, Srichand P. Hinduja, Chairman of the €25-billion Hinduja Group, said the joint venture plant marked a milestone in the centuries-old UAE-India ties.

“Our group already has a strong presence in the region. The opening of the plant demonstrates our increasing commitment to the region. We look forward to further fostering the UAE-India partnership by facilitating stronger cooperation in several areas, including exchange of expertise and cross-border investments.”

“The support and cooperation that we have received from the authorities for setting up the factory has been overwhelming and our goal is to make this plant a global benchmark,” he said.

Following the inauguration of the plant, Shaikh Saud also launched the AVIA range of trucks manufactured by Ashok Leyland’s Czech venture, AVIA Ashok Leyland Ltd.

Shaikh Saud said the RAK Government has strived to foster the right environment for growth by providing one-stop-shop for licencing and offering cost effective strategies and facilities to investors.

“We understand that the fast-changing business environment of today calls upon governments to be equally responsive to change. So we have offered open access to investors, not as a privilege but as a right, because they are the best teachers for us on how to understand and adapt to change,” Shaikh Saud said.

The factory will have an initial annual capacity of 2,000 buses and trucks of international styling and quality. The AVIA range of trucks, currently produced at the Prague headquartered plant, would also roll out from the RAK plant by next year with a planned capacity of 2,000 trucks per year. The D-Line series of Avia trucks will complement Ashok Leyland’s medium and heavy duty trucks, in serving the Middle East and Africa markets.

Ashok Leyland Chairman Dheeraj G. Hinduja said that the company is aspiring to become one of the top 10 global commercial vehicle companies in the next five years.

“The first models to roll out from the new RAK factory will be the D75-140, a 7.5-tonne truck powered by a 140-hp engine, and the D120-180 [12-tonne, 180-hp engine], with wheel base options,” he said.

Dheeraj said the company is looking to expand its facilities “because we are growing a lot more within Middle East, specifically the GCC countries, and we feel this is the right base to service those markets from. The RAK plant will play a vital role in the company’s global operations and said that the export- oriented facility would serve the Middle East, Africa and CIS markets.”

“This facility is an important building block in our quest to be a global player. Ashok Leyland has enjoyed a dominant position in the popular bus market of the Gulf region and therefore it was only natural for us to set up a manufacturing base closer to our customers,” Ashok Leyland Managing Director R. Seshasayee said.

Rakia chief executive Dr Khater Massaad said that the new factory would be a great fillip to the local economy.

“It will provide more employment opportunities, world-class vehicles and the ‘Made-in-RAK’ tag will surely find great acceptance in the local markets which will in turn help the economy grow.”

issacjohn@khaleejtimes.com