Al Haram Modern Plastic Products Industry Company
The MIGA-administered West Bank and Gaza Investment Guarantee Trust Fund has issued a guarantee of €1.35 million (approximately $1.7 million) covering an equity investment by Ms. Hovestadt Pieternella (Meaf Machines B.V.) of the Netherlands and Al Haram Plastic Company, Mr. Mohammad Kamel I. M. Hassouneh, and Mr. Hatem A.A. Abudayya of the West Bank and Gaza in Al Haram Modern Plastic Products Industry Company. The coverage is for a period of up to three years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves the establishment of a greenfield company in the Tarqumiya Industrial Zone that will produce and supply plastic cups and containers in various sizes for local dairy products. The company will use a new technology, “extrusion and thermoforming,” to produce high-quality plastic dairy packaging.
There is a flourishing dairy industry in the West Bank, but Palestinian dairy companies have to import plastic packaging materials from Turkey, Israel, and Europe as there are currently no local companies able to produce high-quality plastic cups for dairy products. A study conducted by one of the investors estimates that the annual volume of imports is over 53 million plastic cups with a value of about $ 2.7 million. This adds significantly to the dairy industry’s production costs.
This project is supported by the PSI Plus program of the Netherlands Ministry of Foreign Affairs with a grant to cover up to 60 percent of the project cost and an additional amount to cover the MIGA political risk insurance premium for the first three years.
The project will create approximately 30 local jobs and transfer skills and modern technologies for plastic production. It will also strengthen the dairy industry by reducing the need for costly imported packaging materials.
This project is aligned with MIGA’s objective of facilitating investments in conflict-affected environments as well as entities eligible for assistance from the International Development Association.
The project was underwritten through MIGA’s Small Investment Program.