Khalifa Economic Zones Abu Dhabi – KEZAD Group, the integrated trade, logistics, and industrial hub of Abu Dhabi, has announced the signing of a 50-year land lease agreement with specialty tissue manufacturer Star Paper Mill for setting up a new manufacturing facility for recycled kraft paper jumbo reels. The move will diversify the company’s product portfolio, offering to serve a growing demand for biodegradable packaging papers in the UAE.
Under this agreement, Star Paper Mill in partnership with India-based paper and pulp mill machinery and equipment manufacturer and exporter RC Paper Machines, will expand its existing capacities by investing 200 million dirhams in a 59,000 square meter site in KEZAD to manufacture recycled kraft paper jumbo reels that will be used in producing corrugated cartons, besides 100% eco-friendly biodegradable bag papers out of recycled raw materials that are high in demand.
This announcement comes as the next step in promoting the UAE capital’s environmental initiatives, following Abu Dhabi’s milestone ban on single-use plastic bags that came into effect on 1 June, 2022, as the first in the region to introduce an integrated, single-use plastic policy to cut down on the overall use of plastics to drive an eco-friendly, sustainable future.
Star Paper Mill’s new KEZAD facility will have an installed capacity of 1,35,000 tonnes to manufacture a variety of recycled paper, alongside areas for storage and general use. Approximately 10,000 twenty-foot equivalent units (TEUs) of cargo will be handled at Khalifa Port annually as part of the facility needs covering raw material and finished goods.
Chairman of Star Paper Mill Hussain Adam Ali says, “In line with the vision of UAE’s leaders, we believe that to be successful and create long-term value in the future, being sustainable and adopting a circular system is vital. We are using this opportunity as a huge advantage to create products that help reduce carbon emissions and operate as a sustainable industry.” The company’s Managing Director Majid Rasheed adds, “With this facility, we’ll expand our already successful platform to serve in a better way the growing demand in local, regional, and international markets. We are pleased with the decision of our Board of Directors to approve this project in KEZAD, especially if we take into account the financial investment that will be injected, coupled with the integrated and unique business system provided by the KEZAD Group with all its advantages such as the strategic location, advanced infrastructure, and integration with the region’s fastest growing port. With its excellent global connectivity to our key consumer markets, we strongly believe that this project will effectively make Star Paper Mill’s products a popular household consumer name in world markets.”
Abdullah Al Hameli, CEO, Economic Cities & Free Zones Cluster at Abu Dhabi Ports Group, stated that the AD Ports Group is committed in driving sustainable manufacturing through strategic partnerships and investments within KEZAD to enhance industrial competitiveness while maintaining a long-term positive impact on the environment. “Today the Green Agenda is moving ahead in a big way in the UAE, including Abu Dhabi, with ambitious initiatives which are already underway, such as the transition away from single-use plastic and the incentive-based bottle return scheme. Adding to these, we are honoured to support the product diversification efforts of Star Paper Mill in KEZAD to contribute to a cleaner environment for the community and support a circular economy in the UAE,” Al Hameli elaborated.
The company is also reserving an additional 32,000 square meters of land adjacent to the primary plot earmarked for the project to accommodate expected increase in demand. Together, the plots offer the project state-of-the-art primary infrastructure corridors alongside a natural gas pipeline network that would be cost efficient.
Committed to producing eco-friendly products, the project will apply the latest innovation in processing waste generated from the facility using an effluent treatment plant to recycle water and reuse it. Raw materials used including NCC, NDLKC, OCC, and sack kraft waste will be sourced locally to reduce transport-related emissions.
The new facility expands Star Paper Mill’s existing presence in AD Ports Group’s Economic Cities & Free Zones, which presently comprises a 27,000 square meter hygiene tissue paper manufacturing mill, currently running at an installed capacity of 36,000 tonnes.
