Abu Dhabi Ports has signed a Musataha agreement with Integral Plastic Industries Company to build a new manufacturing plant in Khalifa Industrial Zone (Kizad) with an investment of Dh10 million ($2.7 million).
The agreement was signed by Mana Mohammed Saeed Al Mulla, CEO of Kizad, and Khaled Al Saleh, CEO of Integral Plastic Industries Company, a subsidiary of Light Industries Holding Company (Kuwait), said a statement.
The manufacturing facility will be built on a plot of 21,649 sq m in Kizad with the aim of producing 15,000 tonnes per annum of plastic bottles preform (PET), plastic bottles caps (HDPE), and plastic packing strips rolls (PET), it said.
Production is expected to commence in the first quarter of 2018, it added.
Al Mulla said: “We are pleased with the rapid growth we are witnessing at Kizad as we evolve over time to become the preferred partner for businesses looking to invest in this market.”
“The development of Integral Plastic Industries Company-Abu Dhabi’s manufacturing facility in Kizad will strategically benefit the industry and its customers who will now have access to national plastic products that meet international standards and reduce their dependency on imports, therefore reducing costs of doing business and increasing the efficiency of supply chains,” he said.
Al Saleh added: “Our decision to invest in Kizad was a result of its attractive business model which features an integrated infrastructure in a prominent location and easy access to regional markets through Khalifa Port.”
“Being one of the fastest growing industrial zones in the region, Kizad has met all the requirements of our regional development strategy; it is the perfect base for our operations which enables us to extend our products to new markets within the UAE, the Gulf, and the neighbouring regional markets,” he said.
“We will employ the latest and best technologies to meet the growing demand of our customers in the Gulf region for high-quality products that meet the best international standards. We will also offer our customers the opportunity to visit our facility once complete, in order to experience our production process first-hand and personally track their orders,” he concluded
Integral Plastic Industries Company Abu Dhabi was established in 2016 as a limited liability company registered at the UAE Ministry of Economy. The company is also licensed by the Industrial Development Bureau and the Abu Dhabi Department of Economic Development.