Abu Dhabi’s Kezad set to get $54m recycled paper mill

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Khalifa Economic Zones Abu Dhabi (Kezad Group) has signed a 50-year land lease agreement with speciality tissue manufacturer, Star Paper Mill, to establish a new facility to manufacture recycled kraft paper jumbo reels, state-run WAM news agency reported.

Under the agreement, Star Paper Mill, in collaboration with RC Paper Machines, will expand its existing capacities with an investment of AED 200 million ($54.45 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.

The announcement comes on the back of Abu Dhabi’s ban on single-use plastic bags, effective from 1 June 2022.

Star Paper Mill’s new facility will have an 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 materials and finished goods.

The company is also reserving an additional 32,000 square metres adjacent to the primary plot earmarked for the project to accommodate the expected increase in demand.

Committed to producing eco-friendly products, the project will apply the latest innovation in processing waste generated from the facility, using an effluent treatment plant to recycle and reuse water.

Raw materials will be sourced locally in the UAE to reduce transport-related emissions.

The announcement of Star Paper Mill’s new facility expands the organisation’s existing presence in AD Ports Group’s Economic Cities and Free Zones, which at present comprises a hygiene tissue paper manufacturing mill spread over 27,000 square metres with a current installed capacity of 36,000 tonnes.