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Demand for plastic bottles, containers goes up in UAE

DUBAI — The demand for plastic bottles and containers in the UAE is estimated to be growing at around 5 per cent per annum and this year it is expected to be more than 21,000 tonnes, according to a report by Emirates Industrial Bank(EIB).

“Bottles and containers are the highest value added items among the plastic packaging products. The spurt for growth has come from the growth of the domestic beverage industry which needs local sourcing of bottles as these bottles cannot be imported because of their large volumes, the report said.’’

Moreover, these are relatively easy to manufacture as the construction cost of the manufacturing facilities is comparatively low and the manufacturing capacity can be changed to either large volume or small volume production.

The entire plastic industry in UAE comprises around 250 establishments, with a capacity of around 300 thousand tonnes per year. Out of these, 32 units are engaged in the manufacturing of plastic bottles and containers, as in 2004. The existing capacity for all types of plastic bottles and containers is estimated around 13,000 tonnes per year.

To meet the demand, some plastic factories are expanding and opening new plants in the UAE. Furthermore, the country is a net exporter of plastic bottles and containers. Dubai Trade Statistics reveals that in the year 2004, Jebel Ali Free Zone exported Dh 24.8 million worth of plastic bottles and containers. Exports are pre-dominantly in the Gulf region, with Yemen being a major importer from the UAE followed by Kuwait and Bahrain.

The general manager of Kangaroo Plastics told Khaleej Times: “In the last decade, the greater growth spurt has come from plastic products for packaging because of a growing population and greater consumer spending. Our company alongwith its sister concern Emirates Technopack is setting up a new factory at Jebel Ali Free Zone by the end of this year. This new factory is to cater the huge demand of plastic and packaging products in the local and export market effectively. "

The demand for plastic bottles and containers is high as most of the companies first import the products in bulk and re-package their goods domestically.