Star Paper Mills unveils US$54M recycled board mill at KEZAD

UAE – Star Paper Mills is preparing to commission its US$54 million (AED 200 million) recycled container board mill in KEZAD (Khalifa Economic Zones Abu Dhabi), with construction now 95% complete.

The company plans to formally present the landmark project during ProPaper 2025, set for October 13–15, where sustainability-led innovations in the global paper industry will take center stage.

“We expect trial production at this facility to begin before the end of this year, followed by progressive scale-up,” said Majid Rasheed, Managing Director of Star Paper Mills.

“This project 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.”

The new mill spans 59,000 square metres and will have an annual capacity of 135,000 tonnes of biodegradable recycled container board.

The material will be used in corrugated cartons and paper bags, products increasingly in demand across retail, foodservice, and e-commerce.

At least 80% of the waste paper requirement will be met locally, with the remainder imported from markets such as the US and UK.

As Platinum Sponsor of ProPaper 2025, Star Paper Mills will showcase the facility to more than 7,000 trade visitors.

Organiser Verifair expects the event to draw leading global paper industry players, paving the way for new partnerships in the Middle East and Africa, where the pulp and paper market is valued at more than US$20 billion.

The company has also secured an adjacent 32,000 square metre plot for potential expansion. “A detailed feasibility study will determine the next phase of development based on evolving market dynamics,” Rasheed added.

Market data underlines the facility’s timing. Demand for biodegradable and paper-based bags in the UAE and wider GCC is growing at an annual rate of 10–12%, driven by government restrictions on single-use plastics and stronger consumer preference for sustainable alternatives.

The UAE alone requires more than 1 billion paper bags annually, a figure set to rise sharply as e-commerce volumes expand.

Industry analysts forecast that the GCC’s paper packaging market, currently worth about US$9.5 billion, will grow to nearly US$13 billion by 2032, at a CAGR of 3.8%.

According to Jeen Joshua, Managing Director of Verifair, “The Middle East and Africa’s paper industry is being transformed by e-commerce growth and rising demand for sustainable packaging solutions.

“Recycling is at the heart of this shift, and leading players are focused on green production to help mitigate climate risks.”

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