Abu Dhabi targets plastic packaging with dedicated industrial zone

David Tyson, chief executive of the Packaging and Films Association (Pafa), said the $4bn (£2.05bn) Abu Dhabi Polymers Park was more likely to threaten flexible packaging firms in Eastern Europe than the UK industry.

“A lot of investment in Eastern Europe has been due to lower labour costs and a lot of customers have moved their operations there,” he said. “If those customers start moving to the Middle East to make their goods that could move investment in packaging away from Eastern Europe.”

Tyson said the UK flexibles and films sector was in good shape to combat the threat.

“In the UK we have some very well-invested companies with a lot of skills. The markets they have concentrated on are very innovative and require short lead times, particularly the food industry. If shelf-life is one or two days you need local suppliers.”

Tyson also said that a lot could depend on the polymer and energy costs paid by companies setting up in Abu Dhabi.

The park comprises 4.5 square kilometres of land and has been opened to tap in to growing regional production of polymers, which is expected to reach 33 million tonnes a year by 2011.

Its owner, Abu Dhabi Basic Industries Corporation (ADBIC), is a subsidiary of the Abu Dhabi government’s General Holding Corporation.

The park is 20 minutes from the centre of Abu Dhabi, the capital city of the United Arab Emirates, and 40 minutes from the new Khalifa Port.

It is expected to reach full occupancy by 2012 and produce a least one million tonnes of converted plastics products a year across a variety of industries.

ADBIC’s vice-president for petrochemicals, Abdullah Al Darmaki, said Abu Dhabi was “uniquely placed to become a world centre for plastics conversion with ready access to raw materials and export routes”.

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