Two OEM auto parts suppliers set up in Saif zone

Two new OEM suppliers of automotive parts to European, Japanese and U.S. automobile majors have driven into Saif Zone.

The two manufacturing facilities were officially inaugurated yesterday by Sheikh Tariq bin Faisal Al Qasimi, chairman, Sharjah Free Zones Authority, and of the Economic Development Department.

Taryam Mattar Taryam, director general of the zone, explained the two new entrants are Woco Motherson Ltd, a joint venture between the Woco Group of Germany and India's Sumi Motherson Group; and Motherson Sumi Systems Ltd (MSSL), a flagship of the Sumi Motherson Group, and an associate of Japan's Sumitomo Wiring Systems Ltd.

Woco, a black-box designer for the automotive industry specialising in the development of anti-vibration systems, modular technology, motor acoustic systems and rubber technology, already has a technical and buyback arrangement with MSSL.

Last year, the Woco Group had an estimated euro 600 million turnover, and Sumi Motherson 150 euro million.

Vivek Sehgal, chairman, Sumi Motherson, announced the company plans to increasingly focus on growing its production facilities in Sharjah. "We have completed Phase I of our project here, and have initiated talks with the authorities to embark on our Phase II expansion," he stated.

He noted establishing a manufacturing base here makes better sense, particularly in view of maintaining delivery schedules to its principals in Europe.

"A 14-day delivery schedule also allows us to substantially lower inventory costs," he pointed out, while noting the group's OEM supplies find their way into Mercedes Benz, Toyota, Honda, Suzuki, Ford and General Motors car models.

He added the Saif Zone based facilities would also be 100 per cent export oriented units offering OEM products.

Bernhard Wolf of Woco noted the group is represented in 25 countries worldwide and has joint ventures in various parts of the world.

"Our venture with Sumi Motherson in India has now had a welcome spinoff into Sharjah, and we expect this facility to play an increasingly significant role in coming years," he said.