Star Paper Mills to Begin Trial Production at $54 Million Recycled Container Board Facility in KEZAD

Star Paper Mills is set to begin trial production at its US$54 million recycled container board mill in KEZAD, Abu Dhabi, with construction 95% complete. The announcement will be formally made during the ProPaper 2025 event, but the company confirmed operational activities are expected to commence before year-end.

The 135,000-metric ton capacity facility spans 59,000 square metres and is designed to recycle up to 80% of its waste paper input from domestic sources. The mill will produce biodegradable container boards used in manufacturing corrugated cartons and paper bags.

“This project reflects the vision of the UAE leadership to foster sustainable industries,” said Majid Rasheed, Managing Director, Star Paper Mills. “It is designed on circular economy principles, with waste paper primarily sourced within the UAE.”

The initiative supports the UAE’s “Make it in the Emirates” campaign and broader environmental objectives by reducing import dependency and encouraging sustainable industrial practices. The remainder of the waste paper requirement will be met through imports from countries including the US and UK.

Star Paper Mills has also acquired an additional 32,000 square metre plot adjacent to the current facility to explore potential expansion. “A detailed feasibility study will determine the next phase of development based on evolving market dynamics,” Rasheed added.

Rising demand for sustainable packaging, especially due to restrictions on single-use plastics, is driving regional market growth. The UAE alone requires over 1 billion paper bags annually. The GCC paper packaging market, valued at around US$9.5 billion, is forecast to grow to nearly US$13 billion by 2032.

Jeen Joshua, Managing Director of Event Organiser Verifair, noted that recycling and green production are key to future industry growth in the Middle East and Africa.

Source: Packaging MEA