KEZAD signs lease agreement to establish recycled paper mill

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, diversifying the company’s product offering to serve a growing demand for biodegradable packaging papers in the UAE.

Under the agreement, Star Paper Mill in collaboration with RC Paper Machines, will expand its existing capacities with an investment of Dhs200 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.

Promoting the UAE capital’s environmental initiatives, 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.

Abdullah Al Hameli, Chief Executive Officer 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, “In line with the vision of UAE leaders, we in Star Paper Mill 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 for us to create products to achieve reduced carbon emissions and operate as a sustainable industry.

Star Paper Mill’s 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. 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.