Kuwait-based printing and packaging material manufacturer Al Khat Packaging has begun construction of its subsidiary facility at Khalifa Industrial Zone (Kizad) in Abu Dhabi, UAE.
Al Khat's first plant outside Kuwait, the new AED80m ($21.7m) production facility will produce folding paper packaging and printing products to cater to the UAE, Saudi Arabia and South Africa.
Located in Kizad's mixed-use property cluster, the facility is expected to expand the company's production capacity in order to meet the growing requirements of several supply contracts across the region.
Al Khat Packaging is considered as one of the largest packaging companies in Kuwait and provides materials to McDonald's and other key companies in the Middle East.
Al Khat Packaging general manager Mohamed AbouKhalid said: "Today marks the first step towards the realisation of our business growth strategy.
"The construction of our Gulf Printing and Packaging facility will significantly support our expansion plans in catering to our existing prestigious clients and acquiring new ones, while maintaining our high quality and food safety standards.
"With excellent multi-model connectivity and Khalifa Port at our doorstep, Kizad is the natural choice to facilitate this realisation."
In July 2014, Gulf Printing and Packaging entered into a 50-year land lease agreement with officials of Kizad.
Image: The company's senior executives at the ground-breaking ceremony. Photo: courtesy of Abu Dhabi Ports.