ETG and KEZAD Group Sign 50-Year Deal for $40.8M Bioplastic Facility
ABU DHABI — ETG Bio Green Polymer, a subsidiary of the global conglomerate Export Trading Group (ETG), has solidified its footprint in the Middle East’s sustainable manufacturing sector by signing a 50-year land lease agreement with Khalifa Economic Zones Abu Dhabi (KEZAD Group). The agreement facilitates the development of a AED 150 million (approx. $40.8 million USD) facility designed to advance the circular economy through bioplastic production and recycling.
Significant Investment in Abu Dhabi’s Green Economy
The new facility will be constructed on a 100,000-square-meter plot within KEZAD, leveraging Abu Dhabi’s strategic position as a gateway for global trade. This capital investment marks a significant expansion for ETG, a company traditionally known for its vast agricultural supply chain networks across Africa and Asia. By establishing operations in the UAE, ETG aims to bridge the gap between agricultural by-products and sustainable polymer solutions.
The project is structured to roll out in phases. Phase one is dedicated to establishing a state-of-the-art plastic recycling plant and a bioplastic manufacturing unit. This initial phase focuses on reducing dependency on virgin fossil-fuel plastics by supplying high-quality recycled materials and bio-based alternatives to the regional market.
Integrating Recycling and Manufacturing
A key differentiator for this facility is its planned vertical integration. Following the establishment of the polymer production lines, the second phase of the project will introduce bottling capabilities. This expansion will enable a “bottle-to-bottle” ecosystem within the same campus, significantly reducing the carbon footprint associated with logistics and supply chain fragmentation.
The facility is expected to utilize advanced compounding technologies to process recycled polyethylene terephthalate (rPET) and other biopolymers. This aligns with the UAE’s increasing regulatory pressure and industrial goals to divert waste from landfills and promote the use of renewable materials in packaging.
Mohamed Al Khadar Al Ahmed, CEO of KEZAD Group, noted that the agreement underscores the economic zone’s ability to attract leading global companies committed to environmental responsibility. For ETG, the facility represents a strategic pivot toward value-added industrial manufacturing, utilizing their existing global logistics network to distribute sustainable packaging solutions to international markets.
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