Hotpack Global has announced its plan to invest $98.01m (AED360m) in Malaysia over the next 10 years to build 10 biodegradable packaging plants in partnership with Free The Seed.
Hotpack Global is a UAE-based food packaging manufacturer, while Free The Seed is a Malaysian manufacturer of biodegradable products, reported TradeArabia.
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The 3,200m2 production plant at Gurun, Kedah, will be Hotpack’s first Southeast Asia manufacturing facility.
The factory will be constructed at an estimated cost of $24.50m (AED90m) over the next three to five years.
Free The Seed has become a technology and operational partner for Hotpack.
The Malaysian company will offer raw materials, expertise, workforce, and technical capabilities.
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By GlobalDataThis plant will facilitate producing biodegradable packaging utilising various agricultural wastes such as pineapple leaves and other agro-biomass materials.
The plant is expected to generate 70 million units of fast-moving consumer goods (FMCG) packaging products annually.
Hotpack Global Group managing director Abdul Jebbar was quoted by the news agency as saying: “We are glad to venture into Malaysian manufacturing sector by partnering with Free The Seed by investing AED350 million in this project. We have also struck a deal with local Malaysian farmers to ensure a steady supply of agricultural raw materials.
“With this project, we will manufacture and provide a new line of biodegradable products for its global markets, including Gulf Cooperation Council (GCC) countries.”
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Image: The factory will be constructed over the next three to five years. Credit: marcinjozwiak from Pixabay.
