Established in 1996 in the Jebel Ali old industrial zone, which later became part of the Palm Jebel Ali development. N.A.Z Industries played a significant role during a period when the UAE was preparing for rapid economic growth and construction.
During the late 1990s and early 2000s, the UAE experienced significant economic growth and construction. This period was characterized by a surge in infrastructure development and a growing demand for various products and services. At that time, most trailers in the UAE were imported from Europe, and they came with high price tags. This presented an opportunity for N.A.Z Industries (MAMMUT) to enter the market by offering high-quality products at more reasonable prices.
N.A.Z Industries (formerly known as MAMMUT) focused on producing high-quality products. Over the years, the company has built a reputation for its products’ durability and performance. N.A.Z products are not only popular in the UAE but also have a presence in neighbouring countries. This suggests that the company has successfully expanded its reach beyond the local market.
N.A.Z trailers rate as having some of the “best resale value in the market” highlighting the quality and reliability of its products. Now headquartered in a vast and modern new facility in Dubai Investment Park, the firm is determined to expand to meet a boom in demand from its customers.
Speaking to T&FME, N.A.Z Industries CEO Adel Mir talks about playing a vital role in providing cost-effective and high-quality products, particularly in the field of trailers, during a period of significant economic growth in the UAE and the broader region. This is a company determined not stand still to help fleets that are always on the move.
Can you provide an overview of your manufacturing facilities and processes in the UAE?
We have recently opened a new 350,000 sqm production facility in Dubai Investment Park 2 (DIP-2) which we work in two shifts. We will also have a plot in the Freezone which is three times bigger than our facility in DIP 2 – that is under construction and should be ready in 2024. In addition to our own facilities, we have a local supplier (production contractor) under a long-term contract for the supply of beams and chassis for our standard trailers. Their sophisticated production line can produce a trailer chassis in less than one hour. Considering all the above facilities, we should be able to produce more than 400 trailers per month.
What materials and technologies do you use in the construction of your trailers to ensure durability and reliability?
The chassis are built from high quality steel with high grades. The components including axles, hydraulic systems, lighting, brakes, landing legs and rims are all imported from Europe…mainly Germany and Italy. We follow 16 technical and engineering certificates and standards while manufacturing the trailers and our strict Quality Control (QC) department is checking the entire process from materials that are procured to the production process and final products.
They are controlling the quality to ensure that products which are delivered to customers are standard, durable and reliable. Our products are warranted for one year, and after one year we provide service as well. It is important to mention that we do not get any major complaints for the products delivered to clients – and minor issues are rectified immediately.
How would you sum up the NAZ approach to do doing business – what is the NAZ philosophy?
We believe in our products and service, and we know that we are recognised by the market as the number one choice when it comes to trailers and solution for their logistics. It is because of the quality, cost-effectiveness, durability and resale value of our products. We do not compromise on quality, even if the client insists to do so. Our philosophy is to have customers satisfied by the products they buy because that makes them come back to us again.
You’ve recently moved into a new facility in Dubai, please explain why the time was right to make this move?
Over the past three years, the demand for our products has been increasing substantially. We had 80% growth from FY2021 to FY2022 and in FY2023, we expect to have more than 100% growth in terms of production and revenue. The expansion is due to the clients’ calls. We have started receiving lots of enquiries in the last few months which we probably could not cope with in our old facilities hence why we decided to move to bigger facilities while developing the even larger production hub in the Freezone.
The last thing a production needs is disruption – how did you keep going during Covid?
Covid was a challenging time for us. The market demand was low, revenue had dropped and the overheads were high. Like many other companies, we had to reduce the salaries and asked employees to work online from home. Our workers were accommodated in temporary accommodation facilities inside the factory in order to avoid their interaction with other workers of other companies in the camp. The major challenges post-Covid have been the availability of the materials we need, and also the logistics challenges caused by disruption in the supply chain. Only long-term planning can be a solution for these issues, and we currently plan our procurement of components and logistics across two years to secure the materials and components we will need.
From the types of trailers your customers are asking for, what can that tell us about the current market?
Actually, our business is run by our customers and their demands. We are not merely a manufacturer of standard trailers, we provide solutions for logistics, construction and other industries. The current market is different from one to another country. For instance, Qatar and the UAE do not have major construction projects, however, since they have made new cities and developments, they require waste management equipment. The situation is totally different in the countries that are announcing major construction projects.
On that point, have you been surprised by the strength of the Saudi construction market over the past three years?
There is not much construction activity in the region, bar Saudi Arabia. The total spending for major projects in KSA is around $172 billion over the next seven years. As a comparison, Burj Khalifah which is the tallest tower in the world cost $1.5 billion (AED5bn) back in the 2000s.
Do you support the recent changes to load capacity rules in the UAE? What impact will it have on you, your customers and the transportation industry going forward?
We have started R&D into how to modify our existing trailers to coup with the new road regulation. It is an opportunity for us, because it increases the demand of the trailers with less payload. Currently, there are lots of trailers on UAE roads which are carrying much more load than it will be permitted under the new rules. All such trailers should be taken out and replaced by new trailers with less capacity.
One thing that is clear when you visit NAZ is that you believes in supporting your workforce. In your words why is this approach important?
Success is not an accident. It comes with strategic planning and execution and the main element for success are people. Any company that can create happiness for its employees will succeed. The performance of contented employees is pivotal to ensuring our clients’ satisfaction, as it consistently leads to the production of high-quality work and superior outcomes. If someone ask me what are the three factors to run a successful business, I will say People, People, People.
Can you provide references or case studies that demonstrate the success of your trailers in various applications?
Our products are not limited to semi-trailers. We are a true solution provider. We manufacture some products for industries and Oil& Gas applications in UAE and they don`t look like trailers. They are special equipment used for industries.
How do you address environmental and sustainability concerns in your manufacturing processes?
We employ various strategies to minimise our environmental impact. This includes replacing traditional filament bulbs with energy-efficient LED lamps in our trailers and trucks, implementing eco-friendly brake systems, and advocating for the adoption of air disc brakes over drum brakes among our clients. Additionally, for steel surface preparation, we opt for recycled and reusable shot pellets instead of sand blasting.
What is your distribution network like, and where can customers purchase your trailers in the UAE or internationally?
We have seven members in our sales team and we have representative offices in five countries in the region.
How do you stay updated with industry trends and incorporate new technologies into your trailer designs?
We’ve initiated a trend of utilising high-strength steel instead of conventional mild steel to decrease the trailer or body’s weight. Additionally, we conduct Finite Element Analysis (FEA) to assess stress and loading on our designed products, ultimately enhancing their performance.
How far can NAZ go? What are your future plans for expansion?
Our plan is to reach production and delivery of 12,000 trailers per year. The demand is there and we are working to expand in order to meet the demand. Our new facility in DIP-2 can deliver 3,200 units a year in 2 shifts. Our facility in free zone which is still under construction, can deliver 4500 units in 2 shifts. We have a supply contract with one of the most reputed steel factories in the region and we can get approximately 3,500 chassis of standard trailers from them every year. Once the chassis are built, they will be shifted to our own facilities for the completion of trailers.
