King Abdullah Economic City, December 6th , 2010 - A subsidiary of Greif, Inc. (NYSE: GEF, GEF.B), through a joint venture (JV) with Saudi Arabia's National Scientific Company (NSC), will set up a manufacturing facility to produce polypropylene woven fabric at King Abdullah Economic City (KAEC) Industrial Valley, announced recently. The new facility will be the largest of its kind in the Middle East extending on an area of 188 thousand sq meter.

The PPP fabrics are a main component used in the production of  flexible industrial packaging, planned to be manufactured and sold globally by the JV through the Factory in KAEC's Industrial Valley. The facility will commence production in phase one by early 2012. When operating at full capacity by 2016, the planned facility will create many new jobs, and will enable the Kingdom's production capacity of the Polypropylene fabric to reach 10% of global manufacturing.

"This facility is part of Greif's growth strategy to diversify and further serve the global industrial packaging market," said Michael Gasser, Chairman and Chief Executive Officer of Greif. "It will build on the presence we already enjoy in the region with Greif's rigid industrial products. Now, with this agreement, our polypropylene fabric business will be located in a strategic location next to a world-class seaport which will serve as a gateway to the world market." 

David Fischer, President and COO of Greif, said, "The King Abdullah Economic City (KAEC) Industrial Valley, as a new pillar of the Saudi and regional economy, provides strategic logistics capabilities, and establishes access to competitively priced raw materials and utilities for us to efficiently produce the fabric.  We were impressed with the ease of doing business in KAEC."

Fahd Al-Rasheed, Managing Director and Chief Executive Officer of EEC, the Tadawul-listed company developing KAEC, said, "King Abdullah Economic City is continuing to attract giants from various industries. (KAEC) Industrial Valley has been designed using the best standards in the world for industrial zone master planning and provides all the services necessary for the establishment of manufacturing and logistics facilities".

According to Al-Rasheed, the King Abdullah Economic City (KAEC) Industrial Valley will reinforce its position as a regional hub with this significant approach to plastic industry. With its strategic location on the Red Sea next to the King Abdullah Economic City (KAEC) Seaport, it serves international trade between Europe and Asia and reaches 250 million consumers in the Middle East and North Africa.

Greif, Inc. is a world leader in industrial packaging products and services. The company is strategically positioned in more than 50 countries to serve global as well as regional customers. Greif embraces green building principles in the development of its manufacturing facilities. Greif's diverse customers operate in a wide range of industries. Agricultural; automotive; ceramics and glassware; corrugated containers; food beverage and bottled water; furniture; home and building products; industrial products; mining; oils, lubricants and petroleum; lumber and pulp mills; pharmaceutical and specialty chemicals including adhesives and sealant, agrochemicals, cleaning products and industrial coating; paint and pigment; and wire products.

King Abdullah Economic City (KAEC) has handed over a wide range of land plots and the management office at the Industrial Valley and ready to receive and service all tenants. King Abdullah Economic City has also opened the Economic City Authority building.   

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About Emaar, The Economic City and King Abdullah Economic City:
Emaar, The Economic City (Emaar.E.C), established in September 2006, is a Saudi joint stock company managed by Emaar Properties PJSC, one of the world's largest property developers, and a number of high profile investors from Saudi Arabia. Emaar.E.C has a share capital of SR8.5 billion consisting of 850 million shares of nominal value SR10 each. Thirty per cent of the equity, worth SR2.55 billion, was offered for public subscription.

Emaar.E.C leads the master-planning and development of the 168 million sq m King Abdullah Economic City (KAEC), a project being built on a pristine location off the Red Sea in the north of Jeddah. SAGIA (Saudi Arabian General Investment Authority), the body responsible for inward investments into the Kingdom, is the prime facilitator for KAEC.

King Abdullah Economic City (KAEC), a New Age City being built today for tomorrow's generation of Saudi citizens, has six components - sea port, industrial valley, educational zone, central business district with commercial, mixed-use, retail outlets and financial island, resorts and residential area.

The mega-project works closely with the Kingdom's on-going drive to expand the economy create employment opportunities for its youthful population and function as a catalyst to attract foreign investment, global trade, commerce and industry. Based on initial forecasts, the project and its several components will create up to one million employment opportunities in the various industries and service-oriented companies that will open in KAEC. It will also be home to 2 million residents. King Abdullah Economic City (KAEC) was created to promote economic growth by leveraging the potential of Saudi Arabia across sectors and industries. KAEC is the first economic city in the Kingdom of Saudi Arabia with leading edge infrastructure and a business friendly environment.

  

© Press Release 2010