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04-04-23

Hotpack Global Signs Agreement with Saudi Ministry of Industry for Environment-Friendly Packaging Project

(MENAFN) Hotpack Global, a UAE-based manufacturer of disposable food packaging products, has signed an agreement with the Saudi Ministry of Industry to establish a specialized food packaging project in Saudi Arabia. The project, worth an estimated SR1 billion (USD266 million), aims to produce environment-friendly packaging products including recyclable and biodegradable ones. The deal will pave the way for establishing one of the largest specialized food packaging projects in the Kingdom over a period of seven years.

The initiative comes amid a global push to reduce packaging waste, which continues to rise each year. As part of the agreement, the two parties will also collaborate on utilizing some types of agricultural waste to make it one of the basic components of raw materials needed for manufacturing and production inputs in the near future.

The signing of the agreement took place in the presence of Saudi Investment Minister Khaled Al-Falih and Deputy Minister of Industry and Mineral Resources Osama Al-Zamil. Hotpack Global's deal with the Saudi Ministry of Industry follows the company's announcement in April last year to invest USD95.30 million over a period of 10 years to build up to 10 biodegradable packaging plants in Malaysia.

The Malaysian project will be Hotpack’s first-ever factory in Southeast Asia and executed in partnership with Free The Seed Sdn Bhd, a Malaysian manufacturer of biodegradable products from rice straw, facilitated by Malaysian Bioeconomy Development Corp. The first 3,200 sq. m production plant is expected to begin construction in May 2022 and be completed in August 2022, producing 70 million units of fast-moving consumer goods packaging products per year.

The Saudi Ministry of Industry's goal is to place the Kingdom among the top-performing markets for investments. Its mission is to promote Saudi Arabia as a world-class investment destination, attract and retain investors, and expand their investments for the benefit of sustainable national economic growth. Hotpack Global's deal with the Emirati packing products manufacturer is part of this mission, contributing to the Kingdom's efforts to reduce packaging waste and promote environmentally friendly solutions.
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