An environment-friendly project to produce duplex boards for packaging by recycling used cartons and papers will be set up in Riyadh later this year.

This is believed to be the first project in Saudi Arabia to produce packaging material that addresses the Saudi government's environmental concerns.

"We are seeking a loan from the Saudi Industrial Development Fund (SIDF) for the project," Gulf Paper Factory senior official Khaled Abdullah Al Rajhi said in remarks published in the local press. The manufacturing facility will be set up on the premises of the Gulf Paper Factory. Al Rajhi said the project would help meet the growing needs of the local packaging industry. Referring to another unit set up by the company and which became operational recently, he said it would produce different kinds of paper and paper products for the local and neighbouring markets. The SIDF had given a $9.9 million loan to finance the project. The factory is using world-class Korean and German technology to manufacture products in accordance with international standard specifications.