Khoory Group to invest over AED 1bn in containerboard machine at Union Paper Mills, Abu Dhabi

M.A.H.Y. Khoory Group is investing more than AED 1 billion in a new PM4 paper machine at Union Paper Mills' Al Dhafra plant in Abu Dhabi, adding premium containerboard and gypsum-liner grades. The project headlines over AED 1.3 billion of paper mill investments unveiled at Propaper Dubai 2026, including capacity additions by Star Paper Mill, Oryx Paper Mills and Keryas Paper Industry across the UAE and Oman.

Why this mattersMore than AED 1.3bn of new containerboard, kraft and tissue capacity in the UAE and Oman adds regional supply and competition in Gulf packaging paper.

• M.A.H.Y. Khoory Group plans to invest more than AED 1 billion in PM4 at Union Paper Mills' Al Dhafra plant, Abu Dhabi, for containerboard and gypsum-liner paper
• Star Paper Mill's AED 200 million recycled containerboard plant in KEZAD Abu Dhabi started output in April 2026 and reached 50% of its 135,000 tonnes per year capacity by September
• Oryx Paper Mills is building an integrated kraft paper plant at KEZAD Al Ma'mourah targeting Q1 2028 commercial start-up with 150,000 tonnes per year capacity
• Keryas Paper Industry signed an MoU with Al Karama Hypermarket Group for a 20,000 tonnes per year tissue plant in Sohar Industrial City, Oman, with investment of about USD 12 million
• Total investments announced at Propaper Dubai 2026 exceed AED 1.3 billion

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