Obeikan Investment Group will install soon a new stretch film line it recently purchased from Davis-Standard LLC as part of its business expansion.
One of the largest converters in the Middle East, Obeikan is a leader in the liquid packaging, flexible film, publishing and printing markets. The new line will further develop Obeikan’s stretch film capabilities to accommodate customers throughout the region and the world.
Saad Alazwari, chief operating officer of Obeikan Group, said the decision to purchase the Davis-Standard line came down to reputation, value, support and a quality relationship established in 2004 when the company purchased its first line from Davis-Standard GmbH for board coating applications.
“Davis-Standard has shown excellent support over the last four years for the existing line at our facility. With the reputation Davis-Standard has established in the market, the professionalism among its staff, and our past experience with them, we have decided to move forward with a second line.”
The new line is a high-output “bleed-less” 3-m-wide cast stretch film line. It is engineered to produce stretch rolls 500 mm wide of a five-layer structure, at a net output of 1,800 kg per hour. Line components include four air-cooled extruders, a Cloeren feedblock and cast film die, resin loading system, and associated downstream equipment including an IR thickness gauge, BMW-II stretch film winder and fully automatic roll handling system.
According to Davis-Standard’s Middle East district sales manager, Adnan Bdour, Davis-Standard’s presence in the region is growing rapidly. “The Middle East is becoming one of the largest plastic product manufacturing regions in the world due to lower energy prices, lower cost resins, reasonable labour costs and other factors,” said Bdour. “The purchase by Obeikan further solidifies our presence here. They are a major player and we look forward to supporting their business goals with the installation of this new line.”
A prominent group
The Obeikan Investment Group is one of the most prominent organisations in Saudi Arabia.
Obeikan Printing was the first business in the group. Next to operate within the group was Obeikan Packaging. In 1993, the first Obeikan packs appeared on supermarket shelves. The company uses computerised design and full- sized working samples to ensure the most effective packaging.
Today, Obeikan has the capacity to print over 20,000 tonnes a year and is involved with 400 national and international products. In December 2001, Obeikan Duplex, an Obeikan Packaging branch, obtained ISO 9001-2000 accreditation through North America’s leading management system registrar, Quality Management Institute.
Other business within the group are:
Obeikan Flexible Packaging: Large investments in machinery, technology and human resources have created this competitive section in the group.
Now Obeikan is an industry leader in quality, cost and service in every field of food packaging, pharmaceutical packaging, beverages and foil lids.
Elopak Obeikan: The group expanded into liquid packaging in 1994 and claimed that in the very first year it captured 35 per cent of the Saudi market. In 1997 Elopak international activities merged with Obeikan liquid packaging through a joint venture under the name, Elopak Obeikan Co Ltd. This was another step for Obeikan to provide a total solution for packaging to customers in the Arab world and the Middle East.
SIG Combibloc: It was established in 2001 as a joint venture between Obeikan Industrial investment Group and SIG Combibloc Germany to deal in longlife juice machinery and systems.
Obeikan Paper Mill: A new greenfield mill was set up to produce one- and two-side coated duplex boards from recycled waste paper collected within Saudi Arabia. Total investment exceeded $150 million for a total capacity of 150,000 sellable tonnes per year.
The project consists of five lines of stock preparation (Kraft pulp, mixed waste paper, old corrugated cartons, office mixed paper and old newsprint).
Obeikan Saint Gobain Performance Plastics: The latest division in the group, it specialises in producing beautiful lightweight tent-like shapes that cover large areas with no need for pillars or supports. This material is also used in different industrial applications that rely on fiber glass coated with PTFC AND PVC.
Integrated Packaging Systems: This compay operates in the free zone of Dubai Airport, UAE and is a joint venture between Obeikan Industrial Investment Group and MGE Mediterranean & Gulf Engineering Ltd, Malta.
IPS is involved in the sale and marketing of packaging systems for different types of liquids. The main principals are: Krones, Kettner, Federal, Netstal and KF Engineering.
Also a group company is Obeikan Publishers and Book Sellers.
