The company is also reserving an additional 32,000 sqm adjacent to the primary plot earmarked for the project to accommodate expected increase in demand. Image Credit: Supplied

Industrial hub Khalifa Economic Zones Abu Dhabi - KEZAD Group has signed a 50-year land lease agreement with speciality tissue manufacturer Star Paper Mill for the establishment of a new facility, it said on Sunday.

Under the agreement, Star Paper Mill, in collaboration with RC Paper Machines, will expand its existing capacities with an investment of Dh200 million in a 59,000 sqm site in KEZAD to manufacture recycled kraft paper jumbo reels to be used to manufacture corrugated cartons and 100 per cent eco-friendly biodegradable bag papers out of recycled raw materials.

The new facility would have installed capacity of 135,000 tonnes 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.

The company is also reserving an additional 32,000 sqm adjacent to the primary plot earmarked for the project to accommodate expected increase in demand.

Abdullah Al Hameli, CEO of Economic Cities and Free Zones Cluster at AD Ports Group, said: “AD Ports Group is committed to driving sustainable manufacturing through strategic partnerships and investments within KEZAD, in line with our wise leadership’s vision to enhance industrial competitiveness while maintaining a long-term positive impact on the environment.

“Today, the green agenda in Abu Dhabi and the UAE is moving ahead 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 Star Paper Mill’s product diversification efforts in KEZAD to contribute to a cleaner environment for the community and support a circular economy in the UAE.”

Hussain Adam Ali, Chairman of Star Paper Mill, said: “We are using this opportunity as a huge advantage for us to create products to achieve reduced carbon emissions and operate as a sustainable industry.”

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. The raw materials used, including OCC, NCC, NDLKC, and sack kraft waste, will be sourced locally in the UAE to reduce transport-related emissions.

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.”

Star Paper Mill is already operating a hygiene tissue paper manufacturing mill spread over 27,000 sqm with current installed capacity of 36,000 tonnes at AD Ports Group’s Economic Cities & Free Zones hub.