Abdullah Al Khateeb, Managing Director, Ittihad Paper Mill

If we look at the printing and writing industry, it has seen limited growth in the USA and Europe in recent years, even before disruptions from COVID-19 and logistical challenges in 2021-2022. But in contrast to this, Asia, Africa, and the Middle East have experienced modest increases in paper consumption, particularly in China, driving substantial industry investments. However, one of the pressing challenges that haunts the industry is price competition, particularly from integrated mills in the Far East, such as China and Indonesia, which flood the market with cheaper products, especially during low demand. While India is present in this market, it is not considered a major disruptor. Adding to all this, clients are also affected by price fluctuations due to the price-sensitive commodity market.

This is where Ittihad Paper Mill (IPM) comes to the fore to address this. The company has meticulously stationed itself in the MENA region which includes North Africa and the Gulf countries, accounting for approximately 65-70 percent of its business. As deliveries from China or Indonesia can take 6-8 weeks with uncertain pricing, IPM can deliver within 1-2 weeks at current market prices, reducing clients' exposure to price volatility and associated risks. Additionally, Ittihad Paper Mill’s strategic location in the UAE positions it near key markets in the Gulf, Arab countries, and parts of Asia and Africa. Proximity to large markets like Egypt allows Ittihad Paper Mill to capture an expanding share, enhancing its competitive edge.

While the company also ships to North America, Central Africa, and Central Asia, it focuses on the MENA region due to its significant growth potential. Although North America and Europe have stagnated, their per capita paper consumption remains the highest, indicating a gap compared to regions like MENA and the Far East. This gap suggests that Ittihad Paper Mill's markets, while growing, hold significant untapped potential. Today, Ittihad Paper Mill is known in the market for its high-quality product portfolio which includes uncoated woodfree paper reels, folio-size paper, and cut-size finished goods. Furthermore, it is well-equipped to meet the evolving demands of the printing and converting industry through its state-of-the-art production facilities that comply with international standards.

Staying Ahead of the Curve

Ittihad Paper Mill's competitive edge lies in its commitment to consistently meeting the needs of its clients without compromising on quality. The company does not claim to be definitively better than competitors but instead focuses on producing paper that aligns with the high standards expected by customers. When entering the market, Ittihad Paper Mill understood the importance of maintaining top-tier quality, ensuring that clients found their paper to be on par with, if not comparable to, established global brands like Double-A. Over time, the mill successfully replaced these established brands in many markets because clients recognized the reliability of its products.

One of the key differentiators for the company is that, prior to its establishment, the region was an importer of paper, with local businesses having little choice but to accept whatever quality was available from external suppliers. However, its presence transformed the region into an exporter of high-quality paper. “The mill’s consistent production standards and its "Made in the UAE" label have gained recognition, even in international markets like the United States, where clients are specifically requesting "Emirati paper". This speaks to the high standards upheld in the UAE, reflected in the quality of our products”, signifies Abdullah Al Khateeb, Managing Director, Ittihad Paper Mill.

Ensuring the Utmost Quality Standards

Today, Ittihad Paper Mill has built a strong reputation for product quality, consistently delivering high-quality uncoated free paper reels, folios, and cut-sheet finished goods that compete with global brands like Double-A and Navigator. The company’s benefits of reliable, timely delivery and stable pricing outweigh the short-term savings from suppliers in the Far East, which may have longer lead times and price fluctuations.

Equipped with state-of-the-art production facil­ities that adhere to international standards, Ittihad Paper Mill is well-prepared to meet the evolving de­mands of the printing and converting industry. Their paper machine for jumbo reel production and auto­mated sheeting plant utilizes advanced technology, in­cluding the efficient Valmet machine and German ma­chinery from BW Paper. In addition to this, this facility has gained recognition from international visitors for its high-quality production processes.

Above all, Ittihad Paper Mill holds ISO, FSC, and various eco-certifications and is working towards AURD certification for Europe. The company also focuses its capital on water-saving technologies and recycling initiatives with a commitment to environmental, social, and governance (ESG) practices. Additionally, Ittihad Paper Mill prioritizes meeting specific client needs, such as producing lower GSM paper (50 and below), allowing it to cater to niche markets while maintaining competitive quality and pricing. This adaptability positions Ittihad Paper Mill as a leader in the industry who has been prompt and responsive to diverse client requirements.

A Competent Team of Seasoned Professionals

Adding to this, the company’s paper production is complemented by cutting-edge technology, with a Voith machine that produces jumbo reels efficiently and cost-effectively. Additionally, its fully automated sheeting plant is equipped with high-efficiency machinery from renowned German manufacturers like BW Paper. Furthermore, Ittihad Paper Mill has invested heavily in ensuring that its facility is one of the most advanced in the world, earning recognition from international visitors, including those from Europe and the United States, who have praised its top-tier technology and production processes.

Ittihad Paper Mill has established itself as a key player in the paper industry through strategic planning, significant investments, & careful execution

However, it is important to note that the success of Ittihad Paper Mill is not solely attributed to its advanced machinery, but also stems from its exceptional team. The company has assembled a group of highly skilled professionals across Finland, India, China, Indonesia, and the Arab world, who are all dedicated to maintaining high standards of quality. This expertise, combined with the mill’s cutting-edge machinery, has positioned Ittihad Paper Mill as a significant player in the global paper industry.

Noteworthy Journey & Beyond

Since its establishment in January 2020, Ittihad Paper Mill has achieved significant milestones in a short period. By November 2023, the company celebrated the production and sale of one million tons of paper, with exports reaching 70 countries. While the primary market has remained in easily accessible regions, such as the MENA area, Ittihad Paper Mill has also successfully catered to the Far East, North America, and Latin America, positioning itself as a key player in the global paper industry. Furthermore, since commencing operations, Ittihad Paper Mill has achieved remarkable milestones. By November 2023, the company celebrated producing and selling one million tons of paper, with exports reaching 70 countries. While its primary focus remains on accessible markets such as the MENA region, the company has successfully expanded to the Far East, North America, and Latin America, reinforcing its global footprint in the paper industry.

Also to note, before launching operations, Ittihad Paper Mill secured an offtake agreement with one of the largest pulp and paper distributors, which committed to taking around 60 percent of the mill's production. This strategic agreement ensured that marketing the company’s products was not an immediate challenge upon startup. However, it took approximately six to eight months for clients to recognize and acknowledge Ittihad Paper Mill's presence in the market. Positioned in Abu Dhabi, in an unlikely desert location, the company worked diligently to demonstrate the high quality of its paper products. Within a year, the mill gained recognition, and the client education process became much smoother, establishing the company as a trusted player in the industry.

Ittihad Paper Mill has established itself as a key player in the paper industry through strategic planning, significant investments, and careful execution. Recognizing that the majority of paper in the Arab region was imported, the group identified an opportunity, despite the challenges of a $300 million investment and the mill's desert location. They approached this venture cautiously, initially selling private-label products to test market demand and ensure quality standards. Only after achieving the desired quality did, they launch their own brands, starting with Omnia and Maram, followed by Archer and Captain.

This phased strategy allowed Ittihad Paper Mill to compete on quality rather than price, which remains their primary focus. Over the years, the mill has expanded its geographical presence and client base, overcoming initial skepticism by consistently delivering high-quality products. Through strategic branding, market testing, and a commitment to excellence, Ittihad Paper Mill has become a leading supplier in the paper industry with a strong reputation in various global markets.

Robust Roadmap Ahead

“Going forward, our roadmap emphasizes strategic evolution over mere capacity expansion. While the company is open to growth, the focus is on refining market strategies and enhancing client relationships. Here, key objectives include delivering greater value and strengthening market position, particularly in areas where regulatory challenges limit competition. Furthermore, our primary emphasis will remain on building stronger client connections, though potential investments in cost-saving measures and operational efficiencies, as well as the possibility of adding a new sheeting plant, are on the table. Hence, by aligning closely with client needs and offering additional value, we aim to foster long-term relationships that extend beyond transactional sales. We will be dedicated to evolving our strategies so as to consistently meet and exceed client expectations”, concludes Abdullah Al Khateeb.