Saudi Paper inks SAR 300M deal with Italian company to buy sixth production line

Logo of Saudi Paper Manufacturing Co. 

Saudi Paper Manufacturing Co. signed today, March 5, a non-binding agreement with the Italian company TOSCOTEC, one of the world’s largest paper machine manufacturers, to buy a new (sixth) production line with a capacity of 60,000 tons annually.

The approximate value of purchasing the line and the equipment needed for operation is SAR 300 million, which will be financed through the company’s operating revenues, as well as banks and financing parties, according to a statement to Tadawul.

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The agreement will take effect from the date of signing by both parties and will remain in effect until Jan. 31, 2026, unless the two parties agree otherwise in writing.

Technical studies are expected to be approved as soon as the installation, operation and receipt of the fifth production line is completed, the statement added.

 The new line will have an annual capacity of 60,000 tons, bringing the company’s total production capacity to 250,000 tons.

The move aims to increase the company’s market share and support national exports to countries in the Middle East, Europe and Africa, in line with the Kingdom’s Vision 2030.

The agreement is in line with the Kingdom’s national strategy for industry and is based on the company’s strategy for expansion and fulfilling the needs of local and global markets.

Any updates in this regard will be announced in due course, the statement said.