Tetra Pak has initiated the next step of its used beverage cartons (UBC) recycling partnership with Union Paper Mills (UPM) and has an investment plan of AED 2,500,000. This will indefinitely create a closed-loop recycling value chain for end-of-life beverage containers in the UAE. The companies will separately recycle laminated aluminium and paper to extract pure raw materials for reuse.
Tetra Pak and UPM signed a memorandum of understanding to recycle used beverage cartons (UBC) in November last year. The partnership involves technical assessments, recycling expert visits, meetings, and industrial trials with carton packages collected from local dairy producers. Tetra Pak has committed to investing in capital expenditures for new equipment to be installed at UPM. The new recycling equipment is set to be ordered in December, with delivery and installation expected in the second half of 2024.
Through UPM's innovative recycling process, high-quality virgin paper fibres will be extracted from the collected UBCs, which will then be used to produce high-quality test liners for corrugated cardboard boxes. This process not only contributes to reducing waste and conserving natural resources but also supports the circular economy by creating a closed-loop system where the raw materials are recycled and reused again.
Moreover, the recycling process will also recover polyethylene and aluminium (polyAl) from the UBCs, which will be sent to Saudi Top Plastics (STP), a recycling partner of Tetra Pak in KSA, to be recycled into various products such as pallets and crates. This collaboration not only helps to divert these materials from landfills but also promotes the use of recycled materials in the creation of new products, thus reducing the dependence on virgin materials and further reducing the environmental impact of the packaging industry.
Commemorating this effective collaboration, the Managing Director of Tetra Pak Arabia Area, Niels Hougaard, stated: "This project is our way to demonstrate our commitment to sustainability and to collaborative innovation in the region. We strongly believe that we all have a role to play in our battle against climate change. 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".
"The project aligns with the UAE government's ambitions to divert waste from landfills and enhance local recycling capabilities. We are proud to co-chair the Sustainable Manufacturing pillar within the Circular Economy Policy Council and to collaborate with the Circular Packaging Association to drive positive change at a systemic level," Niels Hougaard concluded.
The Chairman of MAHY Khoory Group, which owns UPM, Salahhaldin Sharafi, remarked: "As the pioneer and largest paper recycler in the UAE, sustainability is at the core of what we do. 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".
This agreement is a significant step towards developing Circular Economies in the UAE. It demonstrates the commitment of Tetra Pak and UPM to environmental sustainability and responsible business practices internationally.
Tetra Pak is a global food processing and packaging solutions brand committed to responsible industry leadership with a sustainable business approach. Their team of over 25,000 professional people worldwide values strong partnerships with both customers and suppliers and their core vision is to make food accessible and safe for everyone.
Union Paper Mills, on the other hand, is committed to environmental sustainability and manufactures products from 100% recycled waste paper using advanced, environmentally compliant technologies. They believe in sustainable growth and expansion and have established Al Dhafra Paper Manufacturing Company in Abu Dhabi.
If you want a detailed purview of the recycling sector in the aluminium industry, please spare some time on AL Circle's specially formulated report, World Recycled Aluminium Market Analysis.
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