UAE’s Hotpack to invest $100 million in new US manufacturing facility

Dubai: UAE-based sustainable packing solutions company Hotpack is investing $100 million in a new manufacturing and distribution facility in New Jersey, USA. As part of the initial phase, the plant in Edison is expected to create 200 jobs over the next 5 years.

New Jersey Governor Phil Murphy and officials from Hotpack said the facility would span 70,000 square feet while unveiling the investment on Friday. Operations are expected to begin in June 2025.

A major step in Hotpack’s international expansion strategy, the company said that the plant will focus on the customisation of cups, containers, and clamshells made from both plastic and paper. The company said this strategic investment is intended to strengthen its ability to serve its growing US customer base with ‘greater efficiency and flexibility.’

Abdul Jebbar PB, Group CEO and Managing Director of Hotpack, said, “This investment reflects our dedication to better serving our clients in the US market and contributes to the local economy through job creation and advanced manufacturing capabilities.”

Wesley Mathews, President and CEO of Choose New Jersey – the state’s non-profit business attraction organisation – said they look forward to supporting Hotpack’s growth as it brings high-quality jobs and sustainable innovation to our region.

Hotpack’s investment follows the March announcement in which the UAE committed to a 10-year investment framework of $1.4 trillion in the United States. The White House said in a statement in March that the framework will ‘substantially increase the UAE’s existing investments in the U.S. economy’ in AI infrastructure, semiconductors, energy, and manufacturing.

UAE investment in the US

UAE entities are significantly boosting their investment across strategic sectors in the United States, representing a substantial flow of UAE capital into critical areas of the US economy.

This includes a major AI Infrastructure Partnership involving Abu Dhabi’s MGX, BlackRock, Microsoft, and others, which aims to mobilise up to $100 billion for building a next-generation data centre and energy infrastructure supporting US AI leadership. Separately, UAE investment fund ADQ and US partner Energy Capital Partners announced a $25 billion US-focused initiative targeting energy infrastructure and data centres.

In the energy sector, ADNOC-owned XRG has committed to investing in US natural gas production and exports and plans further substantial investments across gas, chemicals, energy infrastructure, and low-carbon solutions in the US.

Furthermore, Emirates Global Aluminum (EGA) plans to invest in the first new aluminium smelter in the United States in 35 years, expected to double US domestic aluminium production.

Shortly after US President Donald Trump won the 2024 elections, UAE developer Damac pledged to invest $20 billion to build data centres in the US.

Hotpack expansion

Meanwhile, Hotpack said the new site intends to “strengthen its global supply chain and provide localised customer support in one of the world’s largest packaging markets.”

“We have made significant investments in different countries, which includes investment in 2022 for a biodegradable packaging facility in Malaysia, expansion of manufacturing facilities in Saudi Arabia and our dedicated paper products manufacturing facility in India has been fully functional since 2023, further underlining our role in supporting regional and global markets,” Jebbar added.

New Jersey Governor Phil Murphy, who was in Dubai leading the New Jersey economic mission to the Gulf Arab States, said, “Hotpack’s decision to expand its presence in New Jersey is a powerful endorsement of our state’s strategic location, skilled workforce, and robust infrastructure.”

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