UAE-based Hotpack Global has announced its plan to invest AED360 million in Malaysia over the next 10 years to build 10 biodegradable packaging plants in partnership with Free The Seed Sdn Bhd, a Malaysian manufacturer of biodegradable products from rice straw, facilitated by Malaysian Bioeconomy Development Corporation. 

 

A leading food packaging manufacturer, Hotpack has broken ground on a 3,200 sq m production plant at Gurun, Kedah, thus launching its first-ever manufacturing unit in Southeast Asia. The plant will be built at an estimated cost of AED90 million over the next three to five years. 

 

Through the collaboration, Free The Seed becomes a technology and operational partner for Hotpack, providing raw materials, expertise, workforce, and technical capabilities. The initiative will facilitate produce biodegradable packaging using more diverse agricultural wastes like pineapple leaves and other agro-biomass materials, said the company in a statement. 

 

The groundbreaking ceremony was attended by YB Datuk Seri Dr Ronald Kiandee, Malaysian Minister of Agriculture and Food Industries (MAFI). The plant is anticipated to produce 70 million units of fast-moving consumer goods (FMCG) packaging products per year. 

 

This a major result of business bilateral trade enhancement programs initiated by Malaysian Investment Authority at the Expo 2020 Dubai, it stated.

 

The partnership between Hotpack and Free the Seed was facilitated by a business matching initiative by the Malaysian Government at Expo 2020. The engagement was initiated during the MAFI’s sustainable agriculture week at the Malaysia pavilion in the presence of Malaysian Prime Minister Ismail Sabri Yaakob. 

 

Commenting on the project, Dr Kiandee said: "We are pleased that the efforts and commitment made during the Expo 2020 Dubai have fostered this significant global cooperation, which will potentially transform Malaysia into a leading biodegradable hub in Southeast Asia."

 

"This project is in collaboration with Hotpack is creating massive opportunities for sustainable development including 1,200 jobs for people over a period of 10 years and transform Malaysia into a leading biodegradable hub in the Southeast Asia," he added. 

 

Hotpack Global Group Managing Director Abdul Jebbar said: "We are glad to venture into Malaysian manufacturing sector by partnering with Free The Seed by investing AED350 million in this project. We have also struck a deal with local Malaysian farmers to ensure a steady supply of agricultural raw materials."

 

"With this project, we will manufacture and provide a new line of biodegradable products for its global markets, including Gulf Cooperation Council (GCC) countries," he stated. 

 

"This project, a result of our engagement with Malaysian pavilion at Expo 2020 Dubai, will establish our presence in Southeast Asia with our first factory in Malaysia as part of our 2025 strategy. We expect this would position us as one of the world’s top five producers of disposable food packaging products leading sustainable packaging solutions in the next three years. We have been awarded bio-based accelerator status that enabled us to enjoy various incentives from Malaysia," he added. 

 

Anvar PB, Technical Director of Hotpack at Hotpack, said, “The project will leverage Free the Seed’s innovative technology solutions for biodegradable products, helping Hotpack implement them in their sustainable packaging solutions model. The factory will produce biodegradable food packaging products by recycling diverse agricultural waste like rice straw, pineapple leaves, bagasse (pulpy fibrous material that remains after crushing sugarcane) and other agro-biomass materials.” 

 

“We will augment our customer’s pursuit for effective ESG (environmental, social, and governance) and sustainability initiatives with these new factories. We are committed to meet our Sustainable Development Goals (SDG) by helping others do the same,” he added.-TradeArabia News Service