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UAE to set up plant for armoured vehicles

ABU DHABI — Under a new joint venture between an Abu Dhabi-based company and a South African firm armoured vehicles will be manufactured in the UAE.

South Africa’s Paramount Group, an international company producing defence machineries, has announced tying up with Abu Dhabi’s frontline defence company International Golden Group (IGG) to set up an armoured vehicle manufacturing plant in the emirate with an initial investment of $100 million.

“We have recently signed an agreement with IGG that is in final stage to set up the joint venture. Under the agreement an armoured vehicle manufacturing plant will be set up in Abu Dhabi. It will produce all types of armoured vehicles, including landmine-protected vehicles,” Ivor Ichikowitz, CEO and Chairman of Paramount Group, told Khaleej Times at IDEX 2011.

He said the landmine-protected vehicles can withstand from 10kg to 20kg explosives.

About the joint venture, he said it has taken a couple of years of collaboration to materialise it. For their choice to tie-up with IGG, he said it was their well reputation and their experience in dealing with international defence companies.

Ichikowitz further added he hoped the new manufacturing factory will be operational with production online within the next two years.

He said once the new company was set up, it will act as the Middle East hub to cover the entire regional market. “It is our first entry into the region though we have sold our products here, including Gulf countries. So sold our products in the Gulf region in the past,” he said.

He also said once the factory in UAE was operational, the company would expect increasing sales of Paramount products in the region.

About new orders, Ichikowitz said negotiations are on, especially from the IDEX platform.

“Many delegates have shown interest into our products, particularly the two types of landmine-protected vehicles we have here. We also see serious indications from the UAE having interest in these vehicles. We expect some order from IDEX,” he said.

“We are looking into 50 per cent stake in the new company. The model we follow is that we never go below that. It will be at least 50 per cent,” he responded when asked about the stake ratio between the two companies.

Referring to their Indian manufacturing plant set up in joint venture with Ashok Leyland, Ichikowitz said products were India specific.

“Now we are negotiating with Ashok Leyland to expand it for the production of products for the rest of the world,” he concluded. — nissar@khaleejtimes.com