Industry, Logistics & Shipping

$54.4m recycled containerboard plant opens in KEZAD

ABU DHABI
$54.4m recycled containerboard plant opens in KEZAD

Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology of the UAE, inaugurated the AED200 million ($54.4 million) recycled containerboard manufacturing facility of Star Paper Mill in Khalifa Economic Zones Abu Dhabi (KEZAD) on Thursday, at the Make it in the Emirates 2026 in Abu Dhabi.

In a statement, Star Paper Mill said the start of the full operations of the state-of-the-art KEZAD plant is a milestone underscoring the UAE’s commitment to catalyse sustainable industrial development, while reinforcing national manufacturing capabilities, and speeding up the transition to a circular economy.

“For us, this is a defining moment in our journey with the new plant contributing to the UAE’s industrial and sustainability vision. The KEZAD facility will convert locally sourced waste paper into high-quality recycled containerboard, in turn supporting the packaging industry at a time of unprecedented demand,” said Hussein Adam Ali, Chairman, Star Paper Mill.

Spread across 90,000 sq m with an annual production capacity of 135,000 tonnes of recycled containerboard or jumbo reels used in making corrugated boxes and paper-based packaging by downstream paper convertors, the KEZAD plant will ease pressure on the UAE’s landfills by absorbing a significant volume of waste paper. The plant will recycle up to 80% of waste paper sourced domestically.

“Significantly, sourcing a sizeable share of waste paper in-country, Star Paper Mill will also be contributing to self-sufficiency and decreased reliance on imports in raw materials, while promoting the UAE’s net zero ambitions,” said Majid Rasheed, Managing Director, Star Paper Mill.

He added that the kick off of the new plant comes in the context of an exponentially increasing packaging market across the UAE and the wider GCC, the latter a priority export region for Star Paper Mill. According to Grand View Research, the UAE paper packaging market now valued at approximately $3.8 billion is estimated to be over $6 billion by 2033, with an estimated share of $1.3 billion in corrugated packaging market alone. Across GCC, paper packaging market is estimated at over $9 billion, expected to grow to $13 billion in 2033. – TradeArabia News Service