Saudi: MEPCO to commence $91.94mln project backed by PIF

PHOTO

The board of Middle East Paper Company (MEPCO) approved the investment in the Tissue Paper Production Line 6 project (TM6), which is estimated at SAR 345 million.

The project aims to boost the production capacity of the Juthor factory located in King Abdullah Economic City (KAEC) by 60,000 tonnes, according to a bourse disclosure.

This will bring the total production capacity of the factory to 120,000 tonnes to meet the demands of both local and international markets.

The project will be completed within 24 months and is expected to have a positive impact on the company's results after the beginning of commercial operation in the fourth quarter (Q4) of 2026.

In line with the Saudi 2030 Vision goals, the project will contribute to the growth of the Saudi Arabian economy. It will be financed mainly by government financial institutions, bank loans, and the proceeds of the recent investment by the Public Investment Fund (PIF) into MEPCO.

Rob Jan Renders, Acting President of MEPCO Group, commented: “By investing in state-of-the-art tissue production technology and expanding our manufacturing footprint in the Kingdom of Saudi Arabia, we are not only increasing our production capacity but also reaffirming our commitment to meeting the evolving needs of our customers both domestically and regionally.”

In the first half (H1) of 2024, the net losses of MEPCO plummeted by 48.93% year-on-year (YoY) to SAR 15.24 million from SAR 29.86 million.