GCC packaging market hots up with Hotpack investment

By Noel Ebdon

- Last updated on GMT

Hotpack's new facility will be built in the Dubai Investments Park
Hotpack's new facility will be built in the Dubai Investments Park

Related tags: United arab emirates

Hotpack Packaging Industries has announced it will expand its operations in the UAE with a $27.2m integrated manufacturing and logistics unit in Dubai, as sales of disposable-packaged food continue to grow in the Gulf.

The unit, which will be built in the Dubai Investments Park, will cover 350,000 sq ft, making it the largest facility of its kind in the country. Hotpack, which is part of the Majid Plastics Group, is the UAE’s leading producer and wholesaler of disposable food packaging materials.

"The new integrated facility, certified by ISO and ESMA, will be manufacturing several varieties of plastic, paper and aluminium products to cater to the food service industry, while complying with the highest global standards of quality and hygiene as well as abiding by the recommendations for sustainable practice,"​ said Abdul Jabbar, managing director at Hotpack. “Our mission is to become No.1 in the field of disposable food packaging and related products in the continent."

The food packaging market is flourishing in the Gulf. Market research firm Frost & Sullivan estimated the market for flexible packaging in the GCC to be worth $0.68bn in 2009, on track to hit $1.2bn by 2016.

“Hotpack’s announcement indicates they are seeing the same growth that we do in the UAE and Saudi Arabia,”​ commented Tim Ansell, sales director at Al Thika packaging, a Dubai-based end-of-line thermo forming and tray sealing machine supplier. “There is ever increasing demand in this region for ready meal packs, sandwich packs and the equipment to create and seal them. This new plant, which is really well located, will allow them cover that demand and expand their market coverage.”

The Dubai Investments Park is proving increasingly popular for companies looking to move perishable stock quickly and easily.

"Hotpack has emerged as a leading manufacturing and wholesale player in the food sector supporting industry segment, and we are committed to provide them with excellent infrastructure and utilities network to help them,"​ said Ammar Al Duwaikh, the sales & leasing manager at Dubai Investments Park.

Its popularity has been increasing exponentially as the various parts of the new Al Maktoum International Airport, which is right next door to DIP, come on stream. Cargo flights have been operating from the airport for the last three years, making it even easier for goods to flown into the other GCC markets.

The Majid group, which operates four factories in the UAE and one in India, has annual revenues of over $136 million and is one of the leading manufacturers and wholesale distributors of disposable food packaging, serving and related products in the region. It also operates 15 distribution centres across the GCC, dealing with more than 1,700 products. The group is also thought to be looking into further opportunities across the GCC and into Africa.

Related topics: Middle East

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