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DGrade: A circular Economy Success Story
Transforming Plastic Waste into Profit
Plastic production has risen, with global production reaching over 360 million tons in 2020. Unfortunately, only about 9% of this plastic gets recycled, leading to the accumulation of plastic waste in landfills and oceans. This situation presents a significant challenge but also an opportunity. It is possible to create value from waste by repurposing waste management and recycling into a commercial business model.
Innovative ways of creating value from waste have been gaining traction in the business world, with some companies turning plastic waste into reusable items. With determination and the right partners, it is possible to transform the waste management and recycling industry into a lucrative business model.
By adding tariffs on using plastics, businesses can be incentivised to adopt environmentally friendly practices while simultaneously reducing waste and helping to create a cleaner planet. Companies worldwide are already embracing this approach. With the UAE's ambitious vision and government backing, there is an opportunity to align with this global trend and create a sustainable future while generating income.
REQUIREMENTS
As one of the only companies in the region to support a closed loop for plastic by recycling it into new products, DGrade’s ability to efficiently process polyethylene terephthalate (PET) at scale is critical to meeting local and regional demand for sustainable clothing and recycled packaging.
Headquartered in Abu Dhabi since 2010, the sustainable textiles wholesaler specialises in recycling plastic bottles into its trademarked PET flake, Greenspun™ yarn, to supply customised uniforms, clothing, and accessories to a diverse range of B2B customers. In addition, its Greenspun™ yarn is also used to manufacture a variety of recycled packaging to support the FMCG sector in achieving its sustainability goals.
With a steadfast mission to reduce plastic pollution and support a closed loop industry, DGrade entered 2022 with a vision to expand its PET manufacturing capacity. To do this, the company set forth to establish a new recycling factory with these critical questions in mind:
- How could the company ensure its new facility supported the necessary scale of its recycling equipment?
- How could the company deliver on its promise of executing sustainable manufacturing practices throughout the production cycle?
- How could the company guarantee timely delivery to its growing customer base in the UAE and beyond?
These specific requirements meant selecting a manufacturing base that not only offered scalable and cost-competitive operations but also supported tailored facilities for sustainable production methods and seamless access to key customers.
SOLUTION
DGrade chose to establish its new factory in the heart of Abu Dhabi at AD Ports Group’s KEZAD, the largest grouping of integrated and purpose-built economic zones in the United Arab Emirates.
Attracting a growing number of sustainable manufacturing investments across its business ecosystem, KEZAD provided DGrade with unique benefits to meet the company’s core values and secure its growth targets. These included:
- Scale of Operations: KEZAD Group’s future-ready development model that makes provisions for expansion meant that it was ideally suited to DGrade’s ambitious growth strategy.
- Port-centric Operations: KEZAD’s strategic proximity to the flagship Khalifa Port, a major hub serving more than 25 container shipping lines with direct links to more than 70 international destinations, was another vital factor for DGrade.
- Client Focus: This strategic location was further strengthened by the Group’s innate customer focus, which accommodates customised and tailored requirements to serve investors’ best interests and business strategies.
- Government Backing: KEZAD’s location in Abu Dhabi allows sustainable manufacturers such as DGrade to leverage critical support from federal authorities as they advance a shared vision for conserving the environment.
OUTCOME
With a total land area of 4,000 square metres, making it the company’s largest recycling factory to date, the expansion of DGrade’s operations in AD Ports Group’s KEZAD has been of strategic importance.
As production continues to expand for the company, DGrade has not only reaped the rewards of scalability opportunities at KEZAD but has also seen direct results stemming from its strategic location and the ease of doing business that it affords to investors looking to develop industry-specific facilities.
- In its first eight months of production at the factory, DGrade has already recycled more than 60 million plastic bottles. With the capacity to recycle up to one billion plastic bottles a year at the facility, the company expects continued growth.
- DGrade is promoting a closed loop for plastic in the UAE and providing a leading example of the circular economy in action from its factory in KEZAD, where it manages the full process from recycling collection through to production.
- With KEZAD as its partner, DGrade has stayed true to its sustainable manufacturing promise having installed a custom-built water treatment facility which recycles 80 percent of water used during the recycling process.
With its state-of-the-art facility in KEZAD, DGrade is firmly establishing itself as one of the leading closed-loop manufacturers in the UAE. Bolstered by KEZAD’s future-ready development model and port connectivity, the company looks forward to serving the rising demand for high-quality, sustainable textiles and packaging in the UAE and beyond, while increasing its contribution to a cleaner future for the region’s communities.