United Carton Industries constructing new 120,000 tonnes/year corrugated packaging plant in Riyadh, Saudi Arabia; site expected to be completed in Q4 2014

Mathew Kearney

DUBAI , July 1, 2013 (Gulf Industry) – A new plant that Jeddah-based United Carton Industries Company (UCIC) is building in Riyadh will significantly boost production capacity and market share, the company says.

UCIC has three plants in operation, two of which are in Jeddah and one in Riyadh, and total annual capacity stands in excess of 280,000 tonnes. The new unit, expected to be operational in Q4 2014, will have capacity of 120,000 tonnes per year. The company focuses on high-quality corrugated solutions for specialised and customised packaging needs.

Laser cutting equipment at a UCIC plant

"We currently hold approximately a 42 per cent share of the domestic corrugated packaging market," said a spokesman of the company. "Our focus is the domestic sector and more than 95 per cent of sales comes from within Saudi Arabia. The new plant will enable us to step up overseas sales to some extent but the home market will continue to remain our main priority," he added. The company believes the kingdom produces 600,000 tonnes of corrugated packaging from more than 10 manufacturers.

UCIC is the packaging division of the Hayel Saeed Anam Group that operates in over 22 countries and has interests in sectors including dairy, snacks, edible oil, banking, commodities and hospitality. As well as in Saudi Arabia, the group has corrugated board plants in Egypt, Yemen and the UK. Annual group revenues are in excess of $8 billion.

The equipment range includes a six-colour machine

While UCIC is managed by the Hayel Saeed Anam Group, it has Al Zamil and Al Esayi as partners in the kingdom. The company was established in 1990 and employs a multi-cultural staff hailing from 19 countries.

The new plant, being built on a 97,000 sq m site, is an important element of UCIC's growth strategy which looks to boost market share and volumes through better productivity and investments. Installation in recent years of a new Mitsubishi Heavy Industries 2.8 m corrugator and deployment of new converting lines has significantly helped meet customer requirements.

Floor stands, a popular product

WIDE-RANGING PRODUCTS

UCIC's product range includes RSC boxes, wraparounds, trays, jumbo boxes, shelf-ready boxes, high graphic cartons and floor stands. The FMCG market contributed more than 70 per cent of the 2012 turnover of over SR830 million ($221.3 million). UCIC is keeping an eye on new packaging trends and requirements. "With the retail sector changing, comsumer companies have started focusing on secondary packaging, demanding high-quality printing to match their branding and merchandising needs," it says. "By benchmarking itself with the best in the global corrugated world, UCIC is equipped to handle customers' requirements for high-quality production and service." The company's state-of-the-art automated plants are well maintained to ensure supply security to the Saudi manufacturing industry. Its customers include multinationals and some of the best domestic businesses in the industrial and agricultural sectors.

Floor stands were the latest addition to the product range. "They have been well accepted by many major companies due to their environment friendliness, cost effectiveness and ease in assembling. It's a pleasure to see these stands in the supermarkets of Saudi Arabia," the company enthused. UCIC encourages innovation and has a product development centre to keep abreast of international styles and to adapt production processes accordingly. The company holds in-house competitions to encourage innovation among its employees.

Shelf-ready boxes, a company product

MODERN SYSTEMS

Use of modern processes has made the company more attractive and competitive. UCIC has adopted flexographic printing technology to print up to six colours and the latest laser technology for making die cutting tools. Additionally, all press and design capabilities are built in-house facilitating high-quality printing and shorter lead times.

"Technology and IT have played an important role in making the company run faster on the success path. While Ascor controls the fully automated material handling process, CPMS, BaaN and Oracle play an important role in operations and analysis," the company observes. Information technology allows customers to track deliveries 24 hours a day. Listening to customers is key and relationships with the customers and suppliers hold an important place in company strategy, it says.

UCIC is a highly certified company and holds the ISO 9001-2008 (quality management), ISO 14001:2004 (environmental management), ISO 19001:2008 plus HACCP (quality and food safety management) and BS-OHSAS 18001-2007 (safety legal compliance) accolades.

RSC boxes made by UCIC

UCIC stresses it is driven by considerations of safety, the environment and sustainability and says its highest priority is to minimise the environmental impact of production processes, waste disposal and distribution while safeguarding the health and wellbeing of team-members. UCIC team-members benefit from frequent health and safety training to ensure adherence to all safety protocols determined by local and international standards and government regulations.

Today over 80 per cent of the paper it uses for manufacturing boxes is recycled, this material coming from local and international sources, especially Europe.

With environment and sustainability the key agenda driving the global paper business whose outlook looks positive, UCIC emphasises it is committed to the corrugated industry and to bringing the best available technology and practices from across the globe to its production lines.

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