Taweelah Extrusion Company (Talex) said on Wednesday it was setting up an extrusion products plant at Abu Dhabi's new industrial zone with an investment outlay of Dh735 million ($200 million), as the oil-rich emirate works to diversify its economy.

Talex, a joint venture between state-owned Abu Dhabi Basic Industries Corp and privately owned Gulf Extrusions, had signed a long-term lease agreement with the Khalifa Industrial Zone Abu Dhabi (Kizad), a statement from Kizad said.

The plant will receive aluminium in molten form from Emirates Aluminium (Emal), another tenant of the zone. Some 30 companies have signed agreements to establish themselves at Kizad with nearly 100 more awaiting approvals.

Talex plans to start making extrusion products for the automotive markets in the fourth quarter of 2013.-Reuters