German engineering firm Bauer International is to build a €1.57m ($2m) logistics and maintenance centre within Abu Dhabi’s Kizad industrial zone next to the new Khalifa port.

The German company has signed a 50-year lease agreement for a plot of land within Kizad’s engineered metals products cluster.  

The centre is expected to be operational by December this year and will aid the company’s expansion plans in the Middle East.

The Kizad development is intended to support Abu Dhabi’s aim of diversifying its economy and forms part of the emirate’s 2030 vision. It aims to attract a range of international companies and has divided the industrial area into different sectors covering steel, paper, food and pharmaceuticals, among other industries.

Kizad is part of a $7.2bn investment that includes the new Khalifa Port, which is located next to the industrial zone in Taweelah between Abu Dhabi and Dubai. The two developments are expected to add AED147bn to the Abu Dhabi economy by 2030.

Kizad is being launched in phases. Phase 1 covers 51 square kilometres and went live at the same time as Khalifa Port last September.

Once complete, the development will cover 418 sq km of land.