KEZAD Group, the integrated trade, logistics, and industrial hub of Abu Dhabi, has confirmed it has signed a 50-year land lease agreement with speciality tissue manufacturer, Star Paper Mill, for the establishment of a new facility to manufacture recycled packaging papers – containerboard and paper sacks/bags, diversifying the company’s product offering to serve a growing demand for biodegradable packaging papers in the UAE.
Under the agreement, Star Paper Mill will expand its existing capacities with an investment of AED 200m (approximately €m) in a 59,000 sqm site in KEZAD to manufacture recycled containerboard to manufacture corrugated board.
Promoting the UAE capital’s environmental initiatives, the announcement comes on the back of Abu Dhabi’s ban on single-use plastic bags, effective from June 1, 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 will have capacity of 135,000 tonnes of recycled testliner, fluting and bag paper, alongside areas for storage and general use. The company is also reserving an additional 32,000 sqm of space adjacent to the primary plot to accommodate expected increase in demand.
