Al Ain Farms Group (AAFG) and Borouge have expanded their partnership to increase the supply of locally produced packaging resin materials used across AAFG’s packaging operations in the UAE.
Signed during Make it in the Emirates in Abu Dhabi, the Memorandum of Understanding will see Borouge supply around 3,500 tonnes of high-density polyethylene (HDPE) resin annually to support AAFG’s caps and closures business. The agreement also includes development support for AAFG’s planned expansion into in-house blow moulding operations.
According to the companies, the new arrangement represents a 600% increase in the volume currently sourced by AAFG and is intended to support expanding packaging requirements across its dairy and juice product portfolios.
“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,” said Hassan Safi, Group CEO of Al Ain Farms Group. “Our expanded collaboration allows us to strengthen the local supply chain that supports our products.”
The agreement builds on an existing supplier relationship between the two companies and supports broader industrial manufacturing activity in Abu Dhabi linked to food and beverage packaging.
“Borouge is proud to support the UAE’s leading food producers with locally manufactured resin solutions,” said Hazeem Sultan Al Suwaidi, CEO of Borouge. “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.”
AAFG said its packaging integration strategy began with the installation of its bottle plant in 2018, followed by the launch of its preform and cap plant in 2023. The company is now progressing with on-site HDPE bottle production and robotic palletisation systems at its UHT facility to improve operational efficiency and reduce manual handling.