Khalifa Industrial Zone Abu Dhabi (Kizad) has signed a 50-year land-lease agreement with Al Khat Packaging's subsidiary Gulf Printing and Packaging for new packaging facility.
Said to be Al Khat's first production plant outside of Kuwait, the new AED80m ($22m) facility will produce folding paper packaging and printing products for the UAE, Saudi Arabian and South African markets.
Situated in Kizad's 'Mixed Use' cluster, the 237,516ft2 facility is expected to commence operations in 2016.
At the recently held signing ceremony Kizad CEO Khaled Salmeen said that Gulf Printing and Packaging will add to the company's industrial landscape, which provides advanced infrastructure and facilities designed in line with international best practices.
"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," Salmeen added.
Al Khat Packaging, which is claimed to be the only approved provider of packaging materials for McDonalds in the entire Middle East, further plans to expand its manufacturing capacity with the new facility.
Al Khat produces printing and packaging materials in the state of Kuwait.
