PVAXX Bahrain Project Turns to Sand and HDPE for $85 Million Pallet and Container Plant

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The first week of July saw work commence on an $85 million pallet and shipping container manufacturing plant at the port facility in the Hidd Industrial Area of the Persian Gulf state of Bahrain.

The company driving the project, PVAXX Industries (Hamilton, Bermuda), is using what is claimed to be a revolutionary new raw material consisting of high-density polyethylene (HDPE), sand and the proprietary 'Unifier' product that the company has developed. Low cost HDPE is available in the Gulf, and sand is the basic and abundant feature of the land. PVAXX, with its patented Unifier has applied the technology to low-value materials, which have traditionally never been considered as donor materials, such as sand, salt, and silt. These materials, the company claims, can be used to make up to 80% of the composite of plastic, generating dramatically cheaper alternatives for the production of a variety of plastic products. The pallets and containers will be easily degradable and can also be recycled.

The plant is scheduled to produce 22 million pallets and 200 shipping containers in the first year of operation, which will increase in the second year to 67 million pallets and 400 containers. In the fifth year of operation the production target is 91 million pallets and 2,000 shipping containers. The plant will be the world's largest dedicated to pallet and container production.

The global market for pallets and shipping containers is growing at an annual rate of 5%. PVAXX has forecasted an estimated net profit of $32 million for the first year of operation. The company sees the second year giving a net profit of $141 million and $210 in the fifth year. 320 new jobs will be created at the plant.

Exports will take almost 100% of the production, with major markets in Europe, South East Asia, and other worldwide markets.

PVAXX Industries is comprised of PVAXX LTD (34%), whose R&D facilities are in Cirencester, UK, a strategic partner (57%), and shareholders (9%). Michael Solomon, Project Director, said, "We are extremely pleased to start the construction of our initial production facility and to announce that our company has entered into an agreement with Saudi Consulting Services - Sandconsult (SC) whereby SC will provide up to five lump-sum-turnkey (LSTK) production facilities in accordance with our planned roll-out."

SC will undertake all of then tasks necessary to design and build the manufacturing facilities for the company based on expertise in Process Engineering and Plant Construction. "The PVAXX project will be exciting for SC, " said Faisal Shawaf, Vice President of the Saudi company. "We have an opportunity to complete several LSTK facilities abroad, including North America and China, while assisting the company with meeting its production plans," he said.

PVAXX has spent $20 million over a period of seven years on researching and developing formulae and methodology that are protected by global patents. In addition to the above application in Bahrain, Unifier can be used in the conversion of industrial by-products (such as ash, tires, and agricultural biomass) into highly saleable and useable materials. These materials can be processed on standard molding or extrusion equipment as replacements for traditional wood or plastic products with significant cost savings. PVAXX has also developed other commercial solutions for the industrial use of low-value, high-volume, and problem materials. It has developed what are claimed to be unique bio-compostable plastics and has created leading-edge pharmaceutical capsules. The company's founding technology focused on the innovative use of virgin materials, such as polyvinyl alcohol and calcium carbonate.