MAHY Khoory officials unveiling the $272m paper manufacturing project in Abu Dhabi
UAE-based MAHY Khoory Group has announced plans to invest more than AED1 billion ($272 million) in a new paper manufacturing project at Union Paper Mills’ Al Dhafra facility in Abu Dhabi, aimed at expanding production capacity and diversifying into higher-value paper products.
The project, known as PM4, will incorporate advanced paper manufacturing technologies and forms part of the group’s broader strategy to strengthen its industrial capabilities and support the UAE’s manufacturing sector.
According to the company, the investment aligns with national initiatives including Operation 300bn and Make it in the Emirates, which seek to accelerate industrial development, economic diversification and local manufacturing.
Beyond increasing capacity, the PM4 project is expected to enhance operational efficiency and enable Union Paper Mills (UPM), the manufacturing arm of MAHY Khoory Group, to expand its product portfolio. Planned output will include premium containerboard grades as well as specialised paper for gypsum plasterboard applications, allowing the company to target higher-value market segments.
Salahaldin Sharafi, Chairman of MAHY Khoory Group, described the project as a significant step in the company’s industrial growth strategy.
“PM4 marks a defining chapter in our industrial journey. This is not simply an expansion; it is a strategic investment designed to transform our manufacturing capabilities and strengthen our competitive position for the long term,” he said.
AbdelRhman Obaid, Group CEO, said the project reflects the company’s focus on building a more diversified and resilient industrial platform capable of responding to evolving market requirements and future growth opportunities.
The development is also expected to reinforce UPM’s position within the regional paper industry while supporting sustainability, resource-efficiency and circular economy objectives.
Building on decades of manufacturing experience, MAHY Khoory Group said the project will further strengthen its industrial footprint in the UAE.
