Posted inEquipment/SpareEQUIPMENTPlantService suppliersVehicles

Neweast to set up 165,000sqm regional auto spare parts hub in Dubai’s Jafza

Company signs $136.2m lease agreement with DP World company for facility expected to come up by October 2024

Jafza and Neweast officials at the signing ceremony

A massive new spare parts hub for heavy vehicles and construction equipment will be set up at Dubai’s Jebel Ali Free Zone after Neweast General Trading signed a landmark AED500 million ($136.2 million) lease with the flagship trade and logistics hub of DP World.

Under the lease, signed by Ahmed Juma Ahli, CEO, Neweast General Trading, and Abdulla Al Hashmi, COO, Parks and Zones, DP World UAE, Neweast plans to transform a 165,000 square-metre space at the free zone into a giant spare parts distribution hub.

The facility will support efficient order fulfilment and delivery in the Middle East region for more than 160 premium aftermarket brands, acting as a strategic hub for Neweast’s operations across seven branches in the region with more than 500 dedicated professionals, said the company.

The comprehensive range of automotive spare parts to b distributed will cover various other sorts of vehicles apart from heavy construction equipment and heavy vehicles, including passenger cars, vans, buses, trailers, etc. The product offerings will encompass engine components, transmission components, braking system parts, suspension system parts, air-conditioning parts, lubricants, batteries and tyres.

Neweast to increase workforce by 50%

Neweast said it plans to hire additional employees to support the expansion, and is anticipating a 50% increase in its current workforce. Construction of the new hub is expected to be completed by October 2024, the company added.

Henry Shaaya, managing director, Neweast General Trading, said: “Securing this land lease is a major milestone for Neweast. We are excited to establish this innovative distribution hub in Jafza and cater to the diverse needs of customers across the Middle East and Africa, while solidifying our position as a trusted market leader in aftermarket automotive parts. Our vision is to create a transformative space that leverages advanced technology and Jafza’s seamless logistics solutions to enhance our customers’ experience.”

Abdulla Al Hashmi, COO, Parks and Zones, DP World UAE, said: “We are delighted to host the region’s largest spare parts distribution hub, right here in Jafza. This landmark agreement is a testament to the Free Zone’s unwavering commitment to driving growth in the automotive sector. Jafza is the perfect platform for Neweast to expand its reach and cater to the growing demand for automotive parts in the Middle East and Africa. We look forward to supporting Neweast’s vision and enhancing the automotive ecosystem in Jafza, making it a hub for technological advancements, innovation, and excellence in the automotive parts domain.”