The UAE attaches significant attention to the industrial sector as a major contributor to the economic development, H.H. Sheikh Saud bin Saqr Al Qasimi, Member of the UAE Supreme Council and Ruler of Ras Al Khaimah, said while laying the foundation stone for the US$10 million expansion project that also incorporates a Design and Service Training Centre of Ashok Leyland, India's second largest commercial vehicle manufacturer, at Al Ghail Industrial Park in Ras Al Khaimah on Thursday.

The RAK facility expansion will see the plant more than triple its annual installed capacity to 6,000 units a year, the company said.

''Thanks to the wise leadership of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, the UAE has become a leader in industry, trade and tourism,'' H.H. said.

Sheikh Saud said that industry has always been at the top of his priorities as the emirate has created an attractive, friendly and pro-business investment environment with flexible legislations and state-of-the- art infrastructure and services.

H.H. welcomed Indian investors and partners, hailing the longstanding, and historic economic ties between the UAE and India.

Ashok Leyland, India's second largest commercial vehicle manufacturer, announced expansion of its bus manufacturing plant in Ras Al Khaimah to double production capacity.

Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Culture and Knowledge Development, Sheikh Mohammed bin Kaid Al Qasimi, Chairman of RAK Economic Development Department, G P Hinduja, and other dignitaries from the Hinduja family along the senior management of Ashok Leyland including Vinod K Dasari, Managing Director, attended stone-laying ceremony.

Dasari said the RAK plant is critical for supplying buses to address the needs of the GCC countries. "With our ambitious plans for Africa, we foresee further expansion of the facility."

Ashok Leyland's RAK factory is a joint venture with the Ras Al Khaimah Investment Authority (RAKIA) and is the only certified local bus factory in the UAE and the GCC region.

"A pioneering hub for auto manufacturing, our plant has deepened economic and trade links between India and the UAE, and helped Ras Al Khaimah's continued economic growth. Both direct and indirect employment is set to rise significantly with this increased capacity," Dasari said.

The RAK plant, inaugurated in 2010 by the Ruler of Ras Al Khaimah, will be made into a centre of excellence for its overseas expansion and the establishment of the new design and service training centre was a move in this direction.

"We are aiming to grow significant localisation levels soon and towards this we are working very closely with RAKIA on creating an automotive cluster in Ras Al Khaimah where our vendors will set up shops," Dasari said.

Dasari said the vehicle-maker would be foraying into the value-premium segment of the automotive market of the UAE and the GCC region this year as part of enhancing product portfolio. "This would be in addition to our predominant presence in the school bus segment of the UAE with a market share of over 70 per cent owing to our robust design and enhanced safety features," Dasari said.

Dasari said the new $10 million investment in the RAK plant is aimed at expanding production of current models and introducing new models into the regional market, which will include midi buses and trucks.

Apart from Africa, Ashok Leyland is setting its eyes on South East Asia and South American markets. The three regions are expected to boost their export volumes over the next 3-5 years and the company expects the share of exports in revenues to grow to 25-30 per cent from about 10 per cent now.

Source : WAM