Al Ain Farms Group (AAFG) and Borouge have announced an expanded collaboration to bolster the supply of locally produced raw materials for food packaging. This Packaging Resin Partnership will see the annual supply of high-density polyethylene (HDPE) resin increase to 3,500 tonnes, marking a 600% rise over current procurement levels. The agreement, signed during the Make it in the Emirates forum, provides essential support for AAFG’s caps and closures business while facilitating the company’s upcoming expansion into in-house blow moulding production.
Hassan Safi, Group CEO of Al Ain Farms Group, stated, “Local sourcing is fundamental to how we operate, and our partnership with Borouge demonstrates our commitment to working with UAE-based businesses to support national capability.” He added that the increased collaboration strengthens the local supply chain and contributes to national self-sufficiency targets. Hazeem Sultan Al Suwaidi, CEO of Borouge, noted, “Our partnership highlights the strength of UAE-to-UAE industrial collaboration and the critical role that local supply plays in enabling food security and assembling a more resilient national economy.”
This Packaging Resin Partnership is a strategic component of AAFG’s broader vertical integration efforts, which began with the 2018 installation of a bottle plant and the 2023 launch of a preform and cap facility. By increasing the availability of high-purity materials, the group aims to secure consistent quality, cost-efficiency, and supply chain reliability. Beyond resin procurement, AAFG is actively upgrading its UHT plant with robotic palletisation systems to enhance operational precision and reduce reliance on manual handling.
These developments align with the UAE’s industrial objectives, including the Operation 300bn initiative and the Make it in the Emirates program. By focusing on domestic manufacturing and supply chain resilience, both organizations are working to reduce dependence on imports. This transition reinforces the regional industrial footprint while ensuring that the packaging used for dairy, juice, and poultry products remains consistent with the group’s focus on long-term sustainability and food security.