Abu-Dhabi-based Ittihad International Investment plans to build a AED1bn ($272m) paper mill in the UAE after signing an agreement with the emirate’s Higher Corporation for Specialised Economic Zones (ZonesCorp).

The project will build region’s first uncoated wood-free printing and writing paper mill, which will target consumers in the Middle East and North Africa (Mena) region.

The facility will be built on a 230,000-square-metre site in ZonesCorp’s ICAD II zone outside Abu Dhabi city with a capacity to produce 60,000 tonnes a year (t/y) of paper.

Industrial conglomerate Ittihad International Investment already has seven industrial units in the free zone, including assets in steel, building materials and copper.