Features

Officials at the launch of the Kizad Polymers Park

Officials at the launch of the Kizad Polymers Park



Kizad Polymer Park to be a plastics hub

Positioned as a business hub for plastics manufacturers and other players across the downstream plastics value chain, the park is set to contribute $500 million to exports from the UAE each year, writes PUMMY KAUL

April 2019

Kizad Polymers Park, the newly launched base for plastics manufacturing in the region, is expected to be home to as many as 80 new firms over 2 million sq m of industrial land and will create a $2.5 billion GDP increment for Abu Dhabi by 2025.

The park aims to be a major economic driver for the UAE, producing 300-400 kilo tonnes of plastic products a year, and creating up to 7,000 new jobs by 2025.

“Kizad Polymers Park forms an integral part of the polymers conversion ecosystem in Abu Dhabi and we believe it will grow into a major hub for the industry,” said Samir Chaturvedi, Kizad CEO.

According to him, the potential export market for the Park is estimated at $500 million annually, and it will ensure Abu Dhabi is a hub for developing the latest innovations in sustainability and technology in the industry, including new and advanced and polymer technologies, such as composites and 3D printing. Plastics and chemicals, including polymers conversion, are among the key industries targeted by Kizad.

The launch of Kizad Polymers Park comes as the demand for polymers conversion is on the rise and a new level of stable growth has been established in key regional value chains such as food and packaging.

The global plastics and polymers market was worth $611.9 billion last year, according to international consultants The Business Research Company, and we believe Abu Dhabi is the ideal location for firms to tap into this huge market thanks to its geographic location, supportive legislation and world-class infrastructure.

Chaturvedi: substantial opportunity

Chaturvedi: substantial opportunity

The potential export market for the Park is estimated at $500 million annually, with regional and international demand for plastic products continues to grow in end-user markets due to the lightweight, strong and design flexibility features of the material – particularly in emerging economies.

To thrive, though, major polymer conversion companies need access to streamlined logistics, warehousing and infrastructure, as well as sustainability programmes that minimise plastic waste. All of which is part of the attraction of the Park, Chaturvedi said.

 

NEW OPPORTUNITIES

As a free zone, Kizad Polymers Park is designed to create employment and boost opportunities in many support sectors. “We expect it to create 7,000 jobs eventually,” he said.

The Park has a two-pronged strategy. Firstly, to attract local, regional and international investors looking to expand their existing polymers businesses or establish new businesses targeting local demand as well as export to markets across the Middle East, Africa, and Europe.

Secondly, it will host a variety of other ecosystem players for the downstream plastics value chain, including technical support, testing labs, machine and mould makers, distribution and logistics.

“There is substantial opportunity for implementing new and advanced technologies to enable businesses to commercialise the recycling of plastic waste. The Park is bringing together downstream players to accelerate investment and innovation in the region’s plastics industry,” said Chaturvedi.

Currently, 20 polymers firms are based at Kizad’s industrial and free zone, including Gulf Compound Blending, Cosmoplast, Interplast, Industrium, Songwon Polysys and Schmidt Middle East. These companies are already leveraging Kizad’s interconnected business facilities including turnkey offices, serviced industrial land plots, modular light industrial units, and warehouses. Tenants also benefit from smart technology platforms such as Maqta Gateway, Abu Dhabi Ports’ online community business platform.

Kizad Polymers Park offers firms a competitive environment and enabling policies for polymers conversion ecosystem with all essential components in place. For example, the custom duty exemption recently announced by the Abu Dhabi Department of Economic Development further eases approvals for customers to import raw material, machinery, equipment and spare parts for industrial use, he added.

By 2025 Kizad Polymers Park is expected to be home to as many as 80 new local, regional and international firms which looking to expand their existing polymers businesses or establish new ones targeting local demand as well as export to markets across the Middle East, Africa, and Europe.

Specifically, they will benefit from a unique value proposition which is centered around four key areas:

• Infrastructure: Available plots with different sizes that are competitively priced with reliable utility networks, as well as ready to move in Light Industrial Units (LIUs), warehousing and logistics.

• Connectivity: Khalifa port offers effective loading times and partnerships with multiple major shipping lines. Kizad connects to an excellent network of highways, connecting the Park to Abu Dhabi, Dubai and Saudi Arabia. It also sits close to four major international airports within max range of 130 km. An upcoming railway network is being developed.

• Policies: At Kizad Polymers Park, foreign firms can take advantage of 100 per cent foreign ownership via the free zone or benefit from the park’s flexibility and choose a mainland-based license instead, both with the benefit of full repatriation of profits.  For example, the custom duty exemption recently announced by the Abu Dhabi Department of Economic Development further eases approvals for customers to import raw material, machinery, equipment and spare parts for industrial use.

• Raw materials: The Park benefits from direct access to raw material from local producers, such as Borouge and Adnoc, as well as access to other major producers in the region. The Park also offers a comprehensive portfolio of specialised raw materials imported from destinations around the world.

Kizad Polymers Park project is owned by Abu Dhabi Ports and Kizad and also involves a strategic collaboration framework agreement with Abu Dhabi National Oil Company (Adnoc), which aims to accelerate investment and innovation in the region’s plastics industry.

It has strong support from government stakeholders including Abu Dhabi Department of Economic Development, Industrial Development Bureau and Abu Dhabi Department of Transport.

 


 

'Exceptional growth’ at Kizad

KHALIFA Industrial Zone Abu Dhabi (Kizad), the industrial free zone and subsidiary of Abu Dhabi Ports, is now home to more than 200 tenants with the volume of direct investments at over $17.5 billion, according to Samir Chaturvedi, chief executive officer, Kizad.

Kizad is Abu Dhabi’s integrated trade, logistics, and industrial hub and a key component of the Emirate’s economic diversification and growth strategy, he added.

“We’re extremely proud of the ongoing success and growth of Kizad, which last year saw total tenant occupied space increase by 27 per cent, while the total number of people working within the hub leapt by 15 per cent,” Chaturvedi told the Gulf Industry.

“Kizad is now home to more than 200 tenants and over $17.5 billion in total investments, and we’re looking to sustain that upward trajectory with ongoing infrastructure investment,” he added.

Along with Khalifa Port, Kizad has attracted more than Dh65 billion in investments from over 200 domestic, regional and overseas investors in just six years since becoming operational.

“Our exceptional growth has created significant advantages for the entire business ecosystem of Abu Dhabi, such as 15 per cent reduction in logistics cost in key sectors.

“Our vision for the future is to further enable global trade and the flow of FDI to Kizad. To that end, we are expanding our facilities to attract more companies to the free zone. We are building new warehouses as part of Kizad Logistics City launched in 2018. Last year we have also launched a development called Kizad Construction City to cater to the needs of the UAE’s building materials industry,” Chaturvedi said.

Established in 2010 and operational since 2012, Kizad is fast expanding to span a total area of 410 sq km, which xx said will help facilitate long-term industrial growth and economic diversification of Abu Dhabi.

The free zone has seen a number of positive new developments in recent months which demonstrate Kizad’s ongoing growth and provide a snapshot of the thriving ecosystem at the industrial zone. These include:

• GAC, a leading integrated shipping, logistics and marine services provider, is opening a warehouse and open yard at Kizad Logistics City;

• Dubai-based Trustworthy.ae Group plans to invest Dh365 million ($100 million) to develop an inland container depot, a third-party container freight station and other port-related services over the next five years;

• Arabian Construction Company, a leading construction contractor in the Mena region, is planning to set up operations in Kizad Construction City;

• Amana Contracting & Steel Buildings established a 50,000 sqm storage and logistics facility to house and distribute construction products to large-scale industrial, modular and commercial projects across the UAE and wider region.




More Stories



Tags