Move to revolutionise used beverage cartons recycling in the UAE
Tetra Pak and Union Paper Mills (UPM) have entered the next stage of their partnership, marked by the signing of a ground-breaking AED 2.5mn recycling agreement aimed at establishing a commercially viable collection and recycling value chain for used beverage cartons (UBC) in the UAE.
A memorandum of understanding was signed in November last year and has paved the way for significant progress in identifying the technical and investment needs for the recycling of UBC in the UAE.
Since the signing of the MoU, Tetra Pak and UPM have engaged in extensive collaboration, including technical assessments, recycling expert visits from abroad, numerous meetings, and industrial trials with carton packages collected from local dairy producers.
Investments
The formalisation of this first-of-its-kind partnership outlined Tetra Pak’s investments in capital expenditures (CAPEX) for new equipment to be installed at UPM. Recycling targets and key performance indicators (KPIs) are defined and agreed upon, as well as areas of collaboration in developing the collection and recycling of UBC in the UAE are identified.
The new recycling equipment is set to be ordered in December, with delivery and installation expected in the second half of 2024. Collections will commence even before the recycling line is fully operational to generate feedstock for the start-up and commissioning.
Effective recycling ecosystem
“Tetra Pak’s strategy aims to involve waste management and collection companies, to reach out to potential partners in the region, and to collaborate with our customers and schools to raise awareness about waste segregation and recycling. By involving diverse stakeholders, we aim to create a comprehensive and effective recycling ecosystem,” commented Niels Hougaard, Managing Director, Tetra Pak Arabia Area.
“This new collaboration with Tetra Pak supports our sustainable growth plans, enhancing our recycling capabilities to process UBC and obtain high-quality raw materials for our operations while supporting the UAE’s ambitions to increase recycling,” remarked Salahhaldin Sharafi, Chairman, MAHY Khoory Group, which owns UPM.
This milestone agreement represents a significant step towards developing Circular Economies in the UAE, showcasing the commitment of Tetra Pak and UPM to environmental sustainability and responsible business practices.
