Margarine Container (IML) Market Demand in Saudi Arabia
Saudi Arabia imports significant volumes of margarine and cooking fats, with annual consumption driven by a young, growing population and expanding food service sector. Leading brands including Lurpak, President, and regional brands from Savola and Almarai compete for market share through premium IML packaging. The Kingdom's Vision 2030 program actively promotes domestic manufacturing of consumer goods packaging, offering incentives for converters who establish local production capacity. Currently, most IML margarine containers are imported from Turkey, Egypt, and UAE, creating opportunity for Saudi-based producers. SASO standards for food contact plastics require compliance with GSO technical regulations, which locally produced containers can satisfy with full documentation traceability. The Saudi food service sector's rapid growth, driven by tourism expansion and entertainment industry development under Vision 2030, further increases demand for branded margarine containers. The growing trend toward branded, premium-quality margarine containers with high-resolution printed decoration drives investment in advanced production technology capable of delivering consistent quality at scale. Local manufacturers equipped with modern HWAMDA machinery can respond faster to market changes, offer shorter lead times, and provide customization flexibility that imported products cannot match. This responsiveness becomes a decisive competitive advantage in winning and retaining contracts with major brand customers.

IML mold system for margarine container production
Recommended Machine: HMD 380M8-SPV (380T)
The HMD 380M8-SPV delivers 380 tons of clamping force for margarine container IML production in Saudi operating conditions. Saudi Arabia's low industrial electricity rates of approximately $0.048 per kWh combined with HWAMDA's SPV5 servo efficiency produce exceptionally low energy costs per container. The machine's robust construction handles high ambient temperatures exceeding 45 degrees Celsius in Saudi industrial zones, with enhanced cooling capacity on the hydraulic oil system and sealed electrical cabinets with filtered air conditioning. The 65 mm screw processes PP grades available from SABIC and other Gulf petrochemical suppliers at injection speeds exceeding 300 mm/s. The KEBA controller supports Arabic interface and remote diagnostic connectivity. Platen dimensions of 810 x 810 mm accommodate 4 to 8-cavity mold configurations with integrated SWITEK IML robot mounting positions for complete automation. The machine platform is designed for 24/7 continuous production with recommended maintenance intervals of 2,000 operating hours. Hydraulic oil life extends to 8,000-10,000 hours with proper filtration maintenance. The servo motor and pump assembly is rated for 40,000+ hours of operation, providing years of reliable service before major overhaul requirements. HWAMDA's engineering team provides remote process optimization support during the initial 90 days of production to ensure customers achieve target cycle times and quality metrics.
Mold Configuration: 8-Cavity for Saudi Arabia
HWAMDA's 8-cavity IML mold for Saudi Arabia produces 250g and 500g round margarine tubs meeting Gulf Standard Organization food contact requirements. The mold design incorporates enhanced cooling capacity to maintain optimal mold temperature despite elevated ambient factory conditions in Saudi Arabia. Valve-gate hot runners with individual cavity control ensure balanced filling with weight variation under 1.8%. IML label positioning accuracy of 0.3 mm meets regional market expectations for branded container presentation. The mold steel specification uses NAK80 with chrome plating for corrosion resistance in the Kingdom's occasionally humid coastal factory environments. The 8-cavity configuration delivers 5-7 second cycle times, achieving approximately 4,800 containers per hour. Mold maintenance intervals of 750,000 cycles are achievable with the preventive maintenance schedule provided by HWAMDA, adapted for Saudi operating conditions. Each mold undergoes comprehensive factory acceptance testing at HWAMDA's facility before shipment, including dimensional verification of all cavities, cooling flow rate measurement, and trial production runs with customer-approved PP material. Sample parts from every cavity are provided for customer quality approval. The hot runner controller is factory-calibrated and delivered with the mold for immediate plug-and-play installation on the machine.
Key Specs
- •Valve-gate hot runners with individual cavity control ensure balanced filling with weight variation under 1.8%.
- •IML label positioning accuracy of 0.3 mm meets regional market expectations for branded container presentation.
- •The 8-cavity configuration delivers 5-7 second cycle times, achieving approximately 4,800 containers per hour.

Label magazine feeding system for consistent IML decoration
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Production Capacity and Output Planning
With 8 cavities at 6.0 second cycle, the system produces 4,800 containers per hour or approximately 31.7 million annually. Saudi margarine consumption is concentrated in Riyadh, Jeddah, and the Eastern Province, with demand spread across retail supermarket and food service channels. A single HWAMDA line supplies sufficient volume for 2-3 major brand customers simultaneously. Material consumption at 11-14 grams per container requires 349-444 tons of PP annually, sourced competitively from SABIC's domestic production. HWAMDA recommends 320 production days annually in the Saudi calendar, accounting for Eid holidays and scheduled maintenance periods. Production scheduling should factor in Ramadan demand increases when cooking oil and margarine consumption rises significantly for iftar meal preparation. HWAMDA's production management system provides real-time OEE monitoring with automatic alerts for cycle time deviations, reject rate increases, or machine parameter drift. Historical production data is stored for quality traceability and continuous improvement analysis. The system generates shift reports, daily summaries, and monthly production analytics that support lean manufacturing practices and customer audit requirements.
Investment Budget and ROI for This Market
A HWAMDA margarine container IML line for Saudi Arabia requires $200,000-$260,000 CIF Jeddah or Dammam, including the 380T machine, 8-cavity IML mold, SWITEK robot, and auxiliary equipment. Saudi production costs average $0.016-0.022 per container, benefiting from low electricity and competitive SABIC PP resin pricing. Market prices for IML margarine tubs of $0.040-0.060 yield gross margins of $0.018-0.038 per unit. At 31.7 million annual output, gross profit reaches $570,000-$1,205,000. Saudi operating costs for an 8-person team average $56,000-$67,000 annually. Net profit of $350,000-$900,000 supports payback within 3-9 months. SIDF financing and MODON industrial city incentives can further reduce effective investment requirements. HWAMDA provides comprehensive project financial models with sensitivity analysis for key variables including resin price fluctuations, capacity utilization scenarios, and currency exchange rate movements. These models help buyers present bankable investment proposals to financing institutions. Equipment residual value after 10 years of operation typically retains 25-35% of original purchase price, providing additional investment security.
Key Specs
- •Equipment residual value after 10 years of operation typically retains 25-35% of original purchase price, providing additional investment security.

Servo motor driven IML system for precision label placement
Logistics and Local Support
HWAMDA delivers to Saudi ports in Jeddah and Dammam with 18-22 day transit. Saudi customs duties on injection molding machinery of approximately 5% apply, with potential exemption for MODON-approved projects. HWAMDA provides Arabic and English documentation meeting SASO requirements. Installation takes 14-16 days with on-site training for Saudi and expatriate operators. Saudi Arabia's expanding industrial base includes growing numbers of qualified plastics industry technicians, supplemented by HWAMDA's remote diagnostic support capability. The Kingdom's industrial cities offer attractive factory lease terms with pre-installed utilities, minimizing facility setup time. HWAMDA coordinates with Saudi-based equipment agents for warranty service and local spare parts availability. HWAMDA's standard warranty provides 12 months of coverage for the complete machine with 24-month extended warranty available for servo system components. Factory acceptance testing is offered at HWAMDA's Guangdong facility before shipment, allowing customers to verify machine performance with their specific mold and material configurations. Post-commissioning remote monitoring continues for 60 days to ensure sustained production performance.
Frequently Asked Questions
Saudi Arabia offers exceptionally low electricity costs of $0.048 per kWh, competitive PP resin from domestic SABIC production, and growing domestic demand under Vision 2030 localization goals. These factors combine to produce container costs of $0.016-0.022 per unit, among the lowest globally. MODON industrial city incentives and SIDF financing further enhance project economics. HWAMDA's turnkey production line approach includes machine, mold, automation, auxiliaries, and commissioning in a single package, simplifying procurement and ensuring all components are optimized to work together for maximum production efficiency.
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