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Saudi Paper Manufacturing Company has signed a non-binding agreement with Italy’s paper machine manufacturer, Toscotec, to buy a new production line as part of its expansion plan.
The value of the 60,000 tonnes per year line and the equipment needed is estimated to cost 300 million Saudi riyals ($80 million), the company said in a statement to the Saudi stock exchange.
Technical studies will be approved following the installation and operation of the fifth production line.
The new line, financed through operating revenues and bank funding, will increase the company’s total production capacity to 250,000 tonnes.
The expansion will increase Saudi Paper’s market share and support exports to countries in the Middle East, Europe and Africa, in line with the Kingdom’s Vision 2030.
(Writing by D Madhura; Editing by Anoop Menon)
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