Middle East Paper Company (MEPCO) said its subsidiary, Juthur Paper Manufacturing Company, has signed a contract with Austria-based Andritz AG to manufacture, supply and install the sixth tissue production line (TM6).

The contract value does not exceed 25 percent of its total revenue, as per the last audited annual financial statement, the company said in a statement to the Saudi stock exchange on Monday.

MEPCO reported a total revenue of 866.75 million Saudi riyals ($230.75 million) for 2023.

The 24-month contract includes purchasing a complete production line for tissue paper with an annual production capacity of 60,000 tonnes and a speed of 2,100 metres per minute. 

Andritz AG will be responsible for the manufacturing, supply, and installation.

In August, MEPCO board approved the doubling production capacity of Juthor Paper Manufacturing by adding the tissue paper production line 6 project at a total value of SAR345 million.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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