JEDDAH: Emaar, The Economic City (Emaar E.C.), the Tadawul-listed company developing King Abdullah Economic City (KAEC), has signed a memorandum of understanding (MoU) with Savola Group through its wholly owned subsidiary company Savola Packaging Systems (SPS), to establish a plastic industry cluster in the Industrial Zone of KAEC.
Fahd Al-Rasheed, CEO and board member, Emaar. E.C., and Dr. Sami Baroum, managing director, the Savola Group, signed the MoU in Jeddah recently. SPS is a wholly owned subsidiary of the Savola Group, a Saudi joint stock company with diversified business interests. SPS is a leading Saudi player in the plastics packaging industry locally and internationally.
As per the MoU, SPS will be the strategic partner of Emaar.E.C. in carrying out necessary studies to identify product lines and determine raw material prices, optimum volume, capacities and product research and development for maximum value generation, and in creating a global plastic industry hub within the KAEC Plastics Valley. “The KAEC Plastics Valley, which was unveiled by Custodian of the Two Holy Mosques King Abdullah during his recent visit to KAEC, has already become an investment destination for plastic industries from around the world. SPS is a leader in the plastics industry regionally and has proven its competencies through sustainable growth models. By joining hands with SPS in driving forward the development of the KAEC Plastics Valley, Emaar.E.C. is creating a vibrant hub for the plastics industry,” Al-Rasheed said.
“This is in line with the vision of the Saudi Arabian General Investment Authority (SAGIA), KAEC’s prime facilitator, to make Saudi Arabia one of the top-ten most competitive economies in the world. The Plastics Valley initiative will lead to employment generation and the growth of ancillary industries, thus complementing our developmental vision of ushering in socio-economic prosperity,” he added.
Dr. Baroum said: “The KAEC Plastics Valley is a significant opportunity for growth for the region’s plastics industry. SPS is a leader in the plastics sector, and the MoU with Emaar.E.C. will help shape plastic industry cluster that will make KAEC the regional and global hub for the industry.” Mohammad Amin Kashgari, CEO, SPS, added: “Through the MoU, SPS will serve as an anchor tenant or manufacturer in the Plastics Valley, and work to strengthen the involvement of international investors as co-anchors. Our objective is to align the plastics industry to meet the needs of our clients and major raw material suppliers.”
