Fujairah Plastic Factories Group to inaugurate a new flexible packaging line in early 2024

Managing Director, Khalid Al Kaabi:

Our products reach 55 countries, our gusto is open to expanding into new export markets

The Emirati Fujairah Plastic Factories Group plans to increase its production capacities in the field of food packaging, by opening a new factory for flexible packaging in 2024.

Khalid Al-Kaabi, Managing Director of the Group; said that they have been keen on supporting sustainability and actively participating in environmental movements through financial and in-kind support throughout the group's half-a-century history.

He added that the company participates annually in several initiatives with organizations and bodies that are active in this field, including, for example, the Emirates Environmental Working Group, in addition to cleaning campaigns within the United Arab Emirates.

He told Commodity Markets magazine, in an interview, that the company’s factories provide a variety of environmentally friendly plastic bags used in these campaigns for more than 20 years, stressing that his group’s vision is to maintain its leadership in manufacturing environmentally friendly plastic in the GCC countries and further expanding its customer base in both Europe and Africa.

On the role of private sector companies in COP 28, which the UAE will host this year, he said that the private sector is ready to fulfil its national role in preparing this global forum, and is committed to the implementation of the plans and decisions of different COPs.

He also highlighted the determination of the United Arab Emirates in advocating for environmental issues, pointing to the UAE’s enactment of legislation to ban the use of single-use plastic bags harmful to the environment in all parts of the country since 2013, in addition to its adoption of the law for the use of environmentally friendly plastic using the OXO Bio-Degradable method, which prompted the Kingdom of Saudi Arabia to follow the example of the UAE and enact a similar law in December 2017. Several Arab countries have also followed suit since.

“The Fujairah Plastic Factories Group was, and still is, at the forefront of companies that pioneered using D2W technology and additives that ensure the production of environmentally friendly plastic," he said, pointing out that his company's interest in serving environmental issues always starts from purchasing machines for the production process, through all stages of production, up to the final product to reduce emissions.

In a different context, Eng. Al Kaabi said that the company's sales this year are expected to see a big boom, as the company has a plan to double its sales in the African, Egyptian, and international markets building upon its extensive experience in the field of export. “Thanks to our portfolio of diversified products, we have been able to export to 55 countries around the world and we continue to enter new markets in Africa, Europe, and America,” he added.

He also said that 70% of the company's total annual production is exported abroad, and the rest is divided between the local market and the markets surrounding the UAE.

Regarding the expansion goals of his company, Eng. Al Kaabi said that Fujairah Group is currently planning to increase its production capacities in the field of food packaging, by opening a new factory for flexible packaging in 2024.

As for the impact of raw materials price hikes on the sales of his company, he said that the high prices of raw materials cast a shadow over his company, explaining that the Fujairah Group factories are transformational factories that buy raw materials and convert them into products that serve the food sector.

“The high prices of raw materials affected the prices of our products, which is beyond our control. Yet, we strive to absorb the largest amount of these increases,” he said.

He added that the average increase in production costs during the past year is no less than 20 to 25 per cent compared to what it was in the past year, which represents a huge challenge that we are trying to face in different and unconventional ways so that our sales and expansion goals are not affected.