20.12.2011 - Eltete to deliver a major factory project to Dubai and MENA countries

Eltete TPM Engineering from Finland to deliver a major factory project to Dubai

Eltete TPM Ltd has concluded a contract in the Middle East with the Retrapac investment group based in Dubai to spread production of cartonboard pallet technology (Paper Roll-to-Paper Pallet technology, see attachment) and APPA cartonboard pallet manufacture (Automatic Paper Pallet Assembly) to the areas of the Gulf states (GCC), the Levant, Iraq, Iran and North Africa.

In the first phase of the contract, a locally-owned Eltete Middle East cartonboard pallet and packaging material factory will be established in Dubai to meet the demand from the United Arab Emirates market. Cartonboard pallet production will be targeted at, for example, in the area of the Dubai Logistics City air freight terminals and for the logistical needs of industry operating in its vicinity. Dubai is a logistical and spare parts centre for many major international companies, from which they can serve their customers with JOT deliveries. Bo Österman, Managing Director of the Eltete TPM Ltd Group, reckons that the Logistics City airfreight terminal project alone will create the need for the production of many millions of APPA cartonboard pallets during 2012 and 2013. In air freight traffic, a significant minimisation of cargo weight can be achieved even with small volumes, which means a reduction in CO2 emissions and direct financial savings for customers.

The Dubai-based Retrapac investment group and Eltete TPM have agreed to start up their first factory in Dubai, UAE, in 2012, after which additional plants will be delivered to Saudi Arabia, Egypt and Iran in 2012 and 2013. By 2016, a total of 10 APPA cartonboard pallet factories will have been set up in MENA (Middle Eastern and North African) countries. As the project progresses, the plan is also to establish local APPA factories in Iraq and Pakistan as well as several in North African countries.

Eltete TPM is spreading its APPA cartonpallet factory technology globally and believes that it can develop the first-ever global carton pallet standard, as a result of which local and economical manufacture and availability can be achieved. The total value to Eltete TPM of the machinery and equipment deliveries for this project is €20-25 million.

The project will be carried out in stages between 2012 and 2016 and will significantly strengthen Eltete TPM’s global position as a supplier of transport packaging materials, turn-key solutions and technology. ”We know and we can see that something big will come out of this. We believe that, from this ‘Paper Roll-to-Paper Pallet’ concept, we can develop a worldwide standard for cartonboard pallet production, which will be known as ‘the Eltete APPA pallet’, and through this we will sell these factories all over the world,” adds Managing Director, Bo Österman. ”In certain projects, we ourselves are involved either as an operator or a strategic partner.

In total, we have 21 transport packaging material plants in different parts of the world, and in the future each one will become engaged in APPA pallet production. This business is interesting because many APPA pallets will be sold once it is possible to manufacture them very locally. At the moment we have many projects ongoing all over the world, and this has become a pretty global business.”