Technovaa plans $68m packaging plant in Kizad
The factory will cover 35,000 square metres, and will have double the production capacity of Technovaa’s current facility in Dubai Investments Park. Initial construction work started in June, with the official ground breaking ceremony this month – the company plans to complete the factory in June 2015.
Technovaa, the packaging subsidiary of Dubai-based Darvesh, was founded in 1997. The firm produces a range of food packaging products including PVC-free polyethylene cling film, food package lamination films, and branded and plain bags for meat, bread and fresh produce, along with other packaging materials.
Export capacity boost
“Our branch location provides unprecedented market access, especially through Khalifa Port, which will enable us to expand our export capacity. Our plan is to export 60% of our overall production volume from Kizad to European, Middle East and African markets and cater to the local demand,” said Hassan Suleman Darvesh, chairman of Darvesh.
“Furthermore, Kizad’s highly competitive operating cost environment will provide us with an excellent business platform to further improve our full range of services, competitive pricing strategies, as well as our production and marketing capabilities,” he added.
More food makers
Within Kizad’s food cluster, Technovaa joins Gulf Printing and Packaging (GPP), the exclusive provider of packaging materials for McDonald’s in the Middle East , which started work on a factory in June. Other food-focused firms set to open facilities in Kizad include Spinneys, NFPC and Brazilian food giant BRF.
“As one of the region’s leading paper and plastic film producers, we are very pleased to welcome [Technovaa]. Kizad’s comprehensive intermodal transportation network and close proximity to Khalifa Port with market access to more than 4.5 billion potential customers and business partners worldwide will not only offer Technovaa enhanced supply chain efficiencies but guarantee smooth, time and cost effective import and export activities,” said Mohamed Juma Al Shamisi, chairman of Kizad’s board of directors, and CEO of Abu Dhabi Ports Company.
Technovaa has seen rapid expansion over the last few years. In July this year the firm bought a controlling stake in loss-making Italian polyethylene film manufacturer Macplast. In 2012 Technovaa leased an 11,000 square metre site in the New Germany Industrial Park near Durban, South Africa, to expand its packaging operations in the country.