Kizad and industrial plastic packaging manufacturer and supplier Palletco sign 50-year musataha agreement; Palletco to invest US$25M in exchange for 247,580-sq.-ft. plot of land within Kizad facility in Abu Dhabi, UAE, with production starting early 2014
November 27, 2013
(Al Bawaba Business)
– Officials from Khalifa Industrial Zone Abu Dhabi (Kizad), a wholly-owned subsidiary of Abu Dhabi Ports Company (ADPC), and Palletco, a leading manufacturer and supplier of plastic packaging products, have signed a 50 year Musataha Agreement. The total investment that Palletco will inject into their manufacturing facility in Kizad will be AED 90.7 million (USD 25 million).
The investment guarantees Palletco, which plans to start production in early 2014, a 247,580 sq. ft. plot of land in Kizad s Mixed Use Cluster .
Specialized in the field of industrial packaging and storing, Palletco is also a pioneer in the manufacturing of plastic pallets in the UAE. The production of plastic crates, used for example in the food and beverage or logistics sector, is a further part of the company s high quality product portfolio, making Palletco a well-known and highly reputable name in the industry, especially in the Middle East.
Commenting on the signing of the agreement, Engineer Khaled Salmeen, CEO and Managing Director of Kizad, said: Palletco s long-term commitment and sizable investment in its upcoming manufacturing facility is a further confirmation of Kizad s attractive industrial profile. With its innovative, low cost infrastructures, state-of-the-art ICT environment and excellent market access through its adjacent deep water Khalifa Port, Kizad offers fantastic business opportunities, and we are delighted to have found another strong partner on our way to support Abu Dhabi in diversifying the economy.
Aboobacker Ponneth, Managing Director, Palletco, added: The services, facilities and location of Kizad are ideal for Palletco s next stage of growth in the regional and international market. We look forward to establishing our manufacturing facility in the industrial zone and to developing new business partnerships with surrounding industries. Khalifa Port will help us tremendously to expand our distribution lines and develop our import and export activities.