Al Khat Packaging subsidiary Gulf Printing and Packaging has signed a 50-year land lease agreement with officials from Khalifa Industrial Zone Abu Dhabi (Kizad).

Al Khat Packaging, which is the only approved provider of packaging materials for McDonalds in the entire Middle East, will use the land for an AED80m ($22m) facility to meet the requirements of various supply contracts covering the region.

Spread over a 237,516ft² plot of land, the plant will produce folding paper packaging and printing products for the UAE, Saudi Arabian and South African markets.

It is Al Khat’s first production plant outside of Kuwait, and is expected to commence operations in 2016.

Kizad CEO Khaled Salmeen said that the company’s Kuwaiti business partners will benefit from its strategic location with market access to 4.5 billion people worldwide.

"Gulf Printing and Packaging will considerably add to Kizad’s industrial landscape which offers advanced infrastructure and facilities designed in line with international best practices", Salmeen added.

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"Al Khat Packaging’s choice of settling in Kizad is another indicator that our efforts to establish the industrial zone regionally and globally have come to fruition."

Image: Kizad officials have signed an agreement with Al Khat Packaging’s subsidiary Gulf Printing and Packaging. Photo: courtesy of Abu Dhabi Ports Company.