Al Khat is the only approved provider of packaging material for McDonald’s in the Middle East

A NEW subsidiary of a Kuwait firm, Al Khat Packaging, has announced plans to set up a Dh80 million ($21 million) manufacturing facility at Khalifa Industrial Zone Abu Dhabi (Kizad).

A 50-year land lease deal has been signed with Kizad for the facility, which will commence production in 2016 and be Al Khat’s only manufacturing unit outside Kuwait.

Located in Kizad’s “mixed use” cluster, the plant will cover a 237,516 sq ft plot of land and produce folding paper packaging and printing products, especially for the UAE, Saudi Arabian and South African markets.

The new facility will enable the Kuwaiti firm meet various supply contracts covering the region. Al Khat Packaging is the only approved provider of packaging materials for McDonald’s in the entire Middle East.

Kizad CEO Khaled Salmeen attended the signing ceremony along with senior members from Al Khat Packaging including general manager Mohamed Abou Khalid, deputy general manager Samer Hassan and financial and administration manager Emad Farouk Mohamed.

 

A BOOST TO KIZAD

“Gulf Printing and Packaging will considerably add to Kizad’s industrial landscape which offers advanced infrastructure and facilities designed in line with international best practices,” stated Salmeen.

“We are delighted to welcome our Kuwaiti business partners who will significantly benefit from Kizad’s strategic location with market access to 4.5 billion people worldwide, its multimodal transportation network, which includes our flagship deep water Khalifa Port, as well as its business friendly environment and competitive operating costs,” he added.

On Al Khat’s selection of Kizad, Salmeen said: “This is another indicator that our efforts to establish the industrial zone regionally and globally have come to fruition. The growing number of foreign investors shows that we are moving in the right direction in diversifying the economy and developing Kizad into one of the world’s largest industrial zones.”

 

LOCATION EDGE

Abou Khalid said the decision to settle in Kizad was the answer to the company’s growing international customer base and, consequently, to the increasing demand in its products.

“Our plant in Kizad offers us the opportunity to be closer to our international clients and to serve them more efficiently, especially through Khalifa Port,” he noted.

“We follow the BRC Global Standards and have been recognised by the BRC authorities for our quality and food safety for the fourth consecutive year. Kizad’s excellent infrastructure and business environment will help us to maintain our high production standards and further develop our capacities on a global scale,” he added.

Kizad is a 418 sq km industrial zone strategically located between Abu Dhabi and Dubai. With one of the world’s most advanced deepwater seaports and world-class infrastructure, the enclave benefits from excellent multimodal connectivity via the sea, air, road and rail networks to ensure easy accessibility to and from the industrial zone.

The zone’s overriding aim is to support the diversification of Abu Dhabi’s industrial base in line with the provisions of the Abu Dhabi Economic Vision 2030.