Another PLA World-Scale Supplier Is Bound to Affect Global Availability, Pricing

Dubai’s SS Royal Kit Emirates Investment and Global Biopolymers Industries have joined forces to establish a new venture, Emirates Biotech, to transform the PLA bioplastics industry. Shaikh Suhail Ali Saeed Rashed Al-Maktoum and Dr. Shadi Jabari, on behalf of SS Royal Kit Emirates Investment, and Theodorus Everwijn, on behalf of Global Biopolymers Industries, signed the partnership agreement.

Emirates Biotech, formerly known as Gulf Biopolymers Industries, will have its headquarters in Dubai, and will spearhead the production and marketing of PLA biopolymers across the Middle East, Africa and India. It will be headed by newly appointed CEO Marc Verbruggen who has over 10 years’ experience in the PLA bioplastics industry, with expertise in turning startups into global providers of biobased polymer solutions. Emirates Biotech will start commercial operations in early 2025 and intends to start construction of its first PLA production plant in the UAE before 2026.

Another world-scale PLA plant is bound to affect both global availability and pricing of this top-tier bioplastic. Emirates Biotech provided the following answers to PT’s query:

Why is the Middle East a logical location for making PLA, considering that elsewhere where it is currently produced there are a lot of plant starch/sugar resources available for fermentation into lactic acid?
Global commodities such as sugar or starches are transported around the world in very large volumes and at competitive prices. We therefore believe a UAE PLA plant will be cost-competitive versus PLA competitors in other parts of the world. From a commercial point of view, there is a clear benefit being close to your target markets which for Emirates Biotech include the Middle East, India, Turkey and Europe.

What feedstock will the Middle East facility use, and where will it come from?
The principal raw material to make PLA is lactic acid, which can be made from various agricultural feedstocks such as wheat, corn or cane/beet sugar. In order to secure our future lactic acid needs, we are exploring both purchasing lactic acid through long-term supply agreements or investing in our own lactic acid plant. Other raw materials will be sourced locally.

Is it the company's goal, or anticipation, to drive growth of PLA use by increasing the supply significantly and thereby drive down the price?
Our primary focus will be to accelerate the adoption of PLA bioplastics in the region by supporting brand owners and converters; by providing them application development and technical support. Our PLA bioplastics have great value to offer when compared to traditional plastics, we have a reduced carbon footprint, we are biodegradable and have an excellent technical fit in innovative applications like 3D printing. Over the recent decade, the global market for PLA has shown significant growth and we are constructing our plant to meet that growing demand.