Khalifa Economic Zones Abu Dhabi (KEZAD Group), the integrated trade, logistics, and industrial hub of Abu Dhabi, has signed a 50-year land lease agreement with specialty tissue manufacturer, Star Paper Mill, for the establishment of a new facility to manufacture recycled Kraft Paper Jumbo reels.
Under the agreement, Star Paper Mill, in collaboration with RC Paper Machines, will expand its existing capacities with an investment of $54 million (AED 200 million) in a 59,000-square-meter site in KEZAD.
The project is designed to manufacture 100 percent eco-friendly biodegradable recycled kraft papers in Abu Dhabi.
“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 honored 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.”
Mr. Hussain Adam Ali, Chairman of Star Paper Mill, said that, “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 an installed capacity of 135,000 tons to manufacture recycled semi-kraft liner, white top liner, test liner, fluting, and bag paper, alongside areas for storage and general use.
According to the statement, “Approximately 10,000 TEUs cargo will be handled at Khalifa Port annually as part of the facility needs covering raw material and finished goods.”
“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,” commented Mr. Majid Rasheed, Managing Director of Star Paper Mill.