UAE's first munitions factory to be set up in Abu Dhabi

Tawazun Holding LLC, an investment company established by the Offset Program Bureau (OPB), announced today that it has teamed up with Al Jaber Trading Establishment, part of Al Jaber Group, and with Rheinmetall Munitions Systems, in a joint venture to build the United Arab Emirate's first munitions factory to serve the needs of the Armed Forces in the UAE and the region.

The total investment in the joint venture, named Al Burkan Munitions Factory - is Dhs268m ($73m).

The agreement was signed today in Abu Dhabi by Mohamed Saif Al Mazrouei on behalf of Tawazun Holding, Obaid Al Jaber, Chairman of Al Jaber Group, and Detlef Moog, Member of the Rheinmetall Executive Board.

The state-of-the-art Al Burkan Munitions Factory will be built on a dedicated area at the Zayed Military City in Abu Dhabi. The facility will use technology and proven components of world class suppliers in manufacturing, loading, testing, and assembling of various types of ordnance, such as aircraft bombs, artillery, and naval rounds and small arms ammunitions.

It will also encompass an integrated demilitarization plant for environment-friendly explosive and ammunitions disposal, using the latest technology of thermal disposal.

It is envisioned that the plant will also offer ammunitions refurbishment, R&D, and training services.

"This strategic project is borne out of the vision of President His Highness Sheikh Khalifa bin Zayed Al Nahyan for economic development and environmental responsibility in the UAE. It is also in line with the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi Crown Prince, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the OPB," said Mohamed bin Saif Al Mazrouei.

"The need for this type of business has increased dramatically over the past few years as our interest in advanced and efficient industries continues to grow," he added.

The factory will start production of aircraft bombs in mid 2009 and land & navy forces ammunitions in early 2010. Full capacity production is expected in three years.

"We are proud to be a partner in this groundbreaking joint venture to establish a state-of-the-art munitions factory in the UAE. Rheinmetall's stake in the project is another milestone in our long-term commitment to the UAE and a further important step to increase our international business. This underlines our position as a leading ammunition house worldwide," declared Detlef Moog.

Obaid Al Jaber stated: "Al Burkan project is of strategic importance to the UAE Armed Forces. The project will also provide job opportunities for UAE nationals in advanced technological fields, including R&D."

"The project will provide reliable, sustainable and environment-friendly solutions in ammunitions manufacturing and safe disposal, not only to the UAE, but also to the region at large," stated Saif Mohamed Al Hajeri, Director of the Offset Ventures Unit at the OPB.

"Ammunition is a consumable product. It is used for training and warfare purposes and needs to be replaced, replenished, and disposed of over the lifecycle of weapons systems. This is why this project is vital to the UAE and other countries of the region."