In the first phase of the contract, a locally-owned Eltete Middle East cartonboard pallet and packaging material factory will be established in Dubai to meet the demand from the United Arab Emirates market. Cartonboard pallet production will be targeted at, for example, the area of the Dubai Logistics City air freight terminals and for the logistical needs of industry operating in its vicinity. Dubai is a logistical and spare parts center for many major international companies, from which they can serve their customers with just-in-time deliveries.
Bo Österman, managing director of the Eltete TPM group, estimates that the Logistics City airfreight terminal project alone will create the need for many millions of APPA cartonboard pallets during 2012 and 2013. In air freight traffic, a significant minimization of cargo weight can be achieved even with small volumes, which means a reduction in carbon dioxide emissions and direct financial savings for customers.
Retrapac and Eltete TPM have agreed to startup their first factory in Dubai, UAE, in 2012, after which additional plants will be delivered to Saudi Arabia, Egypt, and Iran in 2012 and 2013. By 2016, a total of 10 APPA cartonboard pallet factories will have been set up in MENA (Middle Eastern and North African) countries. As the project progresses, the plan is also to establish local APPA factories in Iraq and Pakistan as well as several in North African countries.
According to Eltete TPM, the total value of the machinery and equipment deliveries for this project is EUR 20 - 25 million. The project will be carried out in stages between 2012 and 2016.
Österman notes that Eltete TPM currently has 21 transport packaging material plants in different parts of the world, and in the future each one will become engaged in APPA pallet production.
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