Abu Dhabi's industrial development body has announced an AED1 billion ($272 million) deal which will see a paper mill being built in its industrial city.
The Higher Corporation for Specialised Economic Zones, known as ZonesCorp, announced an agreement with Ittihad International Investment at the Hannover Messe Industrial Fair.
Ittihad already has seven industrial units within ZonesCorp's Industrial City spreading over a total area of 220,000 sq m and will further expand its presence with the region's first uncoated wood-free printing & writing paper mill targeting consumers in the MENA region.
The project, which will have an annual capacity of 600,000 tons spread over two phases, will generate employment for nearly 200 people, and be spread across 230,000 sq m of prime industrial real estate, a statement said.
Ittihad International Investment is a UAE-based conglomerate with interests spanning copper to steel, and building materials to chemicals.
Over the last two years ZonesCorp has attracted AED11.3 billion of new investment, and 152 new projects creating well over 12,000 new jobs.
Mohamed Hasan Al Qemzi, CEO at ZonesCorp, said: "The Ittihad facility is a hugely important addition to our paper manufacturing cluster and for Abu Dhabi. It is not only a high quality business that will compete on a global scale, but it has attracted commitments from Ittihad's upstream partners such as calcium carbonate and starch producers who have committed to move to the cluster adding another AED100m in new investment."
Amer Kakish, CEO of Ittihad, added: "We are extremely excited to be partnering with ZoneCorp on this project. The ZonesCorp cluster provides us with fantastic opportunities for synergies up and down the value chain."For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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