A UAE company is setting up one of the largest plants to manufacture automobile windscreens in the Gulf, in collaboration with a Finland company.

Umm Al Quwain-based National Finland Auto Glass Company has signed a contract with Finland's Tamglass Limited for the project which will be based in the UAE emirate's industrial area.

The first phase of the project, scheduled for completion in July next year, will cost Dh8 million ($21.78 million).

It will involve setting up automatic processing lines for safety laminated automotive windscreens, with an annual capacity of 300,000 pieces.

The second stage of the project, to begin in 2003, will comprise processing lines for automotive backlite and bullet-resistant glass and architectural glass.

The plant is being set up on 10,000 sq m of land in the industrial area.

The project is partially financed by Dubai Islamic Bank through an industrial loan.