Star Paper Mills to Commission USD54 Million Recycled Container Board Mill in KEZAD

Star Paper Mills announced the near completion of its USD54 million recycled container board mill in KEZAD (Khalifa Economic Zones Abu Dhabi), with construction now 95% finalised.

“We expect trial production at this landmark facility to begin before the end of this year, followed by progressive scale up,” said Majid Rasheed, Managing Director of Star Paper Mills. The new 135,000 tonne recycled container board mill, spread across 59,000 square metres, reflects the vision of the UAE leadership to foster sustainable industries.

It is designed on circular economy principles, with waste paper primarily sourced within the UAE serving as the main raw material. By recycling domestic waste streams, the facility will reduce reliance on imports, support the Government’s Make it in the Emirates vision, and significantly advance the UAE’s environmental protection goals.

Majid Rasheed, Managing Director of Star Paper Mills

The KEZAD facility will produce biodegradable recycled container boards used in the manufacture of corrugated cartons and paper bags. At least 80% of its waste paper requirement will be met from domestic sources, with the balance imported from markets such as the United States and the United Kingdom.

Star Paper Mills has also secured an additional 32,000 square metre plot adjacent to the primary site for potential future expansion. “A detailed feasibility study will determine the next phase of development based on evolving market dynamics,” Rasheed confirmed.

Demand for biodegradable and paper-based bags in the UAE and the wider GCC is surging, driven by government measures against single-use plastics and strong consumer preference for sustainable alternatives. Market studies suggest annual growth of 10–12%, with the UAE alone requiring over 1 billion paper bags per year, especially from retail, food service and e-commerce sectors.

Independent data also shows that the GCC paper packaging market, currently valued at around USD9.5 billion, is projected to reach nearly USD13 billion by 2032, growing at a CAGR of 3.8%.