A new factory for the production of high quality polyethylene industrial heavy duty bags and tubular stretch hood/shrink film using advanced processing technologies is planned to be be set up in Dammam Second Industrial City.

Al Zamil Group, Al Rajhi House Enterprises and Al Ohali Industrial Established have signed a joint venture agreement with Bischof & Klein GmbH and Company to establish the new company, Bischof + Klein Middle East Company.

With a total investment of SR45 million ($12.16 million), the facility will have a capacity of 8,500 tonnes and the products will be marketed in the GCC countries and Asia.

The heavy industrial duty bags are intended for use by petrochemical producers of polyethylene (PE), polypropylene (PP), polystyrene (PS), PVC and fertilisers. The stretch hood/shrink film will be used by the producers of all types of petrochemicals to wrap palletised products. The product will also be used in other industries, where wrapping pallets is essential, such as food products, canned and bottled beverages, agricultural products, solid chemicals and building and construction materials.

Bischof + Klein is one of Europe's leading flexible packaging producers with several units in six European countries. The company is a world leader in the production of specially laminated flexible packs and is claimed to be number two in Europe in the overall flexible packaging business.

The company has established itself as a pioneer in advanced film product research and development and has maintained a well-planned growth strategy.

The joint venture company's first project implementation has already started and is expected to be completed by March 2001. The company has obtained all the necessary licenses from the local authorities and the approval of a loan financing from the Saudi Industrial Development Fund.