The new facility, an outcome of the partnership between Star Paper Mill and KEZAD, will have an installed capacity of 135,000 tonnes to make recycled paper products. Entailing an investment of Dh200 million, the facility spans 59,000 sq m.
December 27, 2022
Khalifa Economic Zones Abu Dhabi – KEZAD Group, the trade, logistics & industrial hub of Abu Dhabi, has inked a 50-year land lease agreement with speciality tissue manufacturer Star Paper Mill. The contract is for the establishment of a new facility, the KEZAD Group said. The upcoming facility will manufacture recycled kraft paper jumbo reels, which will further expand the mill’s product offering in view of a growing demand for paper-based packaging in the UAE.
Within the agreement, Star Paper Mill, in partnership with RC Paper Machines, will expand its existing capacities with an investment of Dh200 million in a 59,000 sq m site in KEZAD. The kraft paper jumbo reels will be used to manufacture corrugated cartons and 100 percent 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 sq m 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.”
In the words of Hussain Adam Ali, Chairman of Star Paper Mill, “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 site will implement the latest technologies in processing waste generated from the facility, using an effluent treatment plant (ETP) 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.