India’s UFlex Limited plans to invest $117.7 million in a new packaging film manufacturing facility in Azerbaijan’s Alat Free Economic Zone (AFEZ), expanding its international production footprint.
A Joint Participation Agreement for the project was signed between the Azerbaijan Business Development Fund (ABDF), Flex Middle East FZE and the Azerbaijan-Uzbekistan Investment Company during the Second Azerbaijan International Investment Forum on 29 September 2026.
The project will be implemented through Flex Middle East FZE, which manages UFlex’s international assets. For this purpose, Flex Films AZB AFEZCO has been established, and a 4.7-hectare plot has been allocated within AFEZ for the planned facility.
The plant is designed to have an annual production capacity of 60,000 tonnes of biaxially oriented polypropylene (BOPP) packaging film. The facility is intended to serve the Azerbaijani market and export markets in neighbouring Commonwealth of Independent States (CIS) and European countries.
Flex Films AZB AFEZCO was incorporated on 17 March 2025 by Flex Middle East FZE to develop the BOPP film manufacturing business in Azerbaijan. The subsidiary’s establishment was disclosed in a regulatory filing by UFlex in March 2025, ahead of the investment agreement announced in September 2026.
BOPP film is widely used in flexible packaging because of its strength, clarity and moisture resistance. Applications include food packaging, labels and wrapping films, as well as packaging used for tissue products.
The investment is expected to support Azerbaijan’s non-oil and gas sector, expand export-oriented manufacturing and attract foreign investment into the country’s packaging industry. The project also adds to UFlex’s international manufacturing network.
Founded in India in 1985, UFlex specialises in packaging films, packaging materials and related products and technologies.
The company exports to more than 150 destinations and operates 16 manufacturing facilities across nine countries and regions: India, the UAE, Mexico, Egypt, the USA, Poland, the CIS, Nigeria and Hungary.
The latest announcement does not specify a construction schedule or an expected commissioning date for the Azerbaijani plant.
