Abu Dhabi's Kezad signs lease agreement with Global Fluorine for $272m factory expansion

Khalifa Economic Zones Abu Dhabi (Kezad Group), the largest operator of integrated economic zones in the UAE, has signed a lease agreement with Global Fluorine Chemical to build phase two of its factory that will triple the company’s production capacity. The Dh1 billion ($272.5 million) expansion of the factory in Kezad Mussafah will be built on a 120,000 square metre plot of land next to its existing 100,000 square metre centre, state news agency Wam said on Monday. The expansion will allow Global Fluorine to add four more speciality chemical products to its portfolio for clients in the UAE and beyond. The agreement is in line with the UAE's aim of developing a circular economy, allowing Global Fluorine to procure raw materials for its premium refrigerants locally. The factories will be strategically located to use the services offered by AD Ports Group as well as Kezad Group to expand its customer base abroad, the report said. The growth and expansion of a “premier refrigerant manufacturer within Kezad”, is part of the country’s efforts to continue to develop integrated business ecosystems, and ensure that “industrial development goes hand in hand with environmental responsibility”, Abdullah al Hameli, chief executive of Economic Cities and Free Zones, AD Ports Group , said. “We proactively take into consideration the future growth of clients and ensure that there is always ample space available for their expansion.” The deal, signed in the presence of Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and President-designate of Cop28, and Mohamed Al Shamisi, chief executive of AD Ports Group, underscores the Ministry's efforts to “strengthen supply chains' localisation and resilience in line with Operation 300bn”, AD Ports Group said. “As part of the UAE's Net Zero by 2050 strategic initiative, it also exemplifies the practical measures being implemented to assist the industrial sector's [gross domestic product] contribution and promote sustainable industrial growth in line with the Cop28 objectives,” it added. The UAE is expanding its industrial base as part of its Operation 300bn strategy, which aims to more than double the contribution of the industrial sector to economic output from Dh133 billion in 2021, to Dh300 billion ($81.68 billion) by 2031. Operation 300bn aims to support 13,500 small and medium enterprises in the next decade. “This signing emphasises the abundant opportunities accessible to all organisations and contributes substantial value to the manufacturing sector in the UAE,” Haojjin Shi, chief executive of Global Fluorine, said. “By integrating this unit, our factory gains full control over our value chain, empowering us to capitalise on Kezad’s versatile platform, which facilitates advanced manufacturing capabilities.” AD Ports launched Kezad Group in September to consolidate and grow its Economic Cities and Free Zones offering, as it seeks to strengthen the emirate's position as an industrial and manufacturing centre . The company's Khalifa Industrial Zone Abu Dhabi and ZonesCorp ― specialised economic zones ― have been integrated into Kezad Group, which comprises 12 economic zones with a total area of 550 square kilometres, including 100 square kilometres designated as free zones. Launched in 2020, Global Fluorine is the latest company to set up or expand existing production facilities in Kezad Group-operated free zones. In April, Kezad signed a 50-year land lease agreement with Al Ghurair Foods to set up three food processing projects with total investments worth more than Dh1 billion to enhance the UAE’s food production capabilities and food security. In December, the Kezad Group signed a preliminary agreement with Dana Steel for the establishment of a new steel plant in Abu Dhabi.

Abu Dhabi's Kezad signs lease agreement with Global Fluorine for $272m factory expansion

The second phase of the project will be developed on a 120,000 square metre plot of land