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M.A.H.Y. Khoory Group said in a statement that the PM4 project at the Al Dhafra plant of Union Paper Mills will incorporate the latest global technologies while moving the company into higher-value segments. The development includes premium containerboard grades and specialised paper for gypsum plasterboard applications as part of a strategic shift beyond simple capacity growth. The investment exceeds AED 1 billion and aligns with the UAE’s Operation 300bn industrial strategy together with the Make it in the Emirates initiative that promote advanced manufacturing and economic diversification across the national economy.
Union Paper Mills currently produces 416,000 tonnes of recycled containerboard each year from three operating machines located in Dubai and Abu Dhabi according to company data. The group established the UAE’s first recycled paper mill in 1987 and maintains a workforce of 2,143 people engaged in paper recovery and manufacturing operations nationwide. Plans for the fourth machine under the PM4 project target startup around 2030 at the Al Dhafra site which already features dedicated fibre treatment and on-site power generation.
The group founded in 1930 and still owned by the Khoory and Sharafi families operates an integrated circular economy that recovers waste paper and wood for reuse in its own production cycle. Green Arabia and the Recyclable Waste Management Division collect material through a network of yards and vehicles before it reaches the mills for processing into new containerboard. National Paper Industries converts the output into corrugated packaging in Ajman while a second facility in Abu Dhabi is scheduled to begin operations in January 2027 completing the loop when used packaging returns for recovery.
Salahaldin Sharafi chairman of the board of M.A.H.Y. Khoory & Co. said in the statement “PM4 marks a defining chapter in our industrial journey. This is not simply an expansion; it is a bold investment in the future of our business designed to redefine our manufacturing capabilities and strengthen our competitive position for decades to come.” The company exports products manufactured in the Emirates to six continents and supplies customers across the UAE from its industrial platform built on manufacturing engineering and lifecycle services.
AbdelRhman Obaid group CEO of M.A.H.Y. Khoory & Co. commented in the announcement “Our ambition is to build a future-ready industrial platform that is smarter more agile and more diversified.” Obaid added “By anticipating market shifts and embracing innovation we aim to unlock new growth opportunities strengthen resilience and create sustainable long-term value.” The CEO noted that the milestone reflects a conviction that long-term success comes through decisive investment continuous innovation and the ambition to lead rather than follow.
The Al Dhafra mill generates its own power from an 11.93 MW gas turbine while the Dubai operations draw on a biomass boiler and a 2 MW solar plant that produces 3 GWh of electricity annually the company reported. Such supporting infrastructure will underpin the PM4 line as it adopts advanced quality control systems and efficiency measures. The project forms part of the group’s preparation to mark its centenary in 2030 under fifth-generation leadership that continues to extend resource recovery and manufacturing capacity within the UAE.
