Abu Dhabi, UAE–Khalifa Economic Zones Abu Dhabi (KEZAD Group) has announced the signing of a 50-year land lease agreement with speciality tissue manufacturer, Star Paper Mill, for the establishment of a new facility to manufacture recycled Kraft Paper Jumbo reels.
Under the agreement, Star Paper Mill in collaboration with RC Paper Machines, will expand its existing capacities with an investment of AED200 million in a 59,000 square metre site in KEZAD to manufacture recycled kraft paper jumbo reels to be used to manufacture corrugated cartons and high in demand, 100 percent eco-friendly biodegradable bag papers out of recycled raw materials.
The announcement comes on the back of Abu Dhabi’s milestone ban on single-use plastic bags, effective from 1 June 2022, the first in the region to introduce an integrated, single-use plastic policy to cut down the overall use of plastics to drive an eco-friendly future.
Star Paper Mill’s new facility would have installed capacity of 135,000 tons to manufacture recycled semi kraft liner, white top liner, testliner, fluting and bag paper, alongside areas for storage and general use. Approximately 10,000 TEUs cargo will be handled at Khalifa Port annually as part of the facility needs covering raw material and finished goods.
Majid Rasheed, Managing Director of Star Paper Mill, said, “With this facility, we’ll expand our already successful platform to better serve growing demand in local, regional and international markets. We are very pleased with the decision of our Board of Directors to approve this project in KEZAD.
“Given the project’s financial scale and KEZAD Group’s unique ecosystem, strategic location, world-class infrastructure and integration with the region’s fastest growing port and with its excellent global connectivity to our key consumer markets, we strongly believe this project will effectively make Star Paper Mill’s products a household consumer name in global markets.”
The announcement of Star Paper Mill’s new facility expands the organization’s existing presence in AD Ports Group’s Economic Cities & Free Zones, which at present comprises a hygiene tissue paper manufacturing mill spread over 27,000 square metres with current installed capacity of 36,000 tons.