Saudi Printing sells production lines for SAR 1.1M, expects SAR 5M non-cash loss

The sale is part of SPPC’s strategy to evaluate exit options for non-core assets and projects

Saudi Printing and Packaging Co. (SPPC) sold on Oct. 15 the polypropylene cup and plastic container production lines owned by its subsidiary, United Packaging Trading Establishment (CAPCO), in the UAE.

CAPCO is wholly owned by SPPC through Emirates National Factory for Plastic Industries (ENPI).

In a statement to Tadawul, the company said the production lines were sold to Golden Business General Trading Co. for AED 1.1 million (SAR 1.12 million).

The assets had a net book value of AED 6 million (SAR 6.1 million) as of Sept. 30, 2026.

The transaction is expected to result in a non-cash loss of approximately AED 4.9 million (nearly SAR 5 million) in the financial statements for the period during which the sale took place.

The company said the sale is part of the second pillar of its strategy, which involves evaluating exit options for non-core assets and projects.

The move aims to focus operational resources on core products and high-growth, high-value-added segments in the group's target markets, particularly amid mounting regulatory pressure on single-use plastic products across the region and their declining margins.

The transaction also supports the fifth pillar of the strategy, which focuses on completing the debt restructuring program and improving liquidity.

This includes halting the funding drain from low-profitability operations, reducing financial burdens, strengthening the company's financial position and generating sustainable value for shareholders.

SPPC added that the proceeds from the sale will be used to fund its operating activities.

No related parties were involved in the transaction, it noted.

According to Argaam data, SPPC's board approved a new strategy in August 2025 aimed at improving operational efficiency and increasing market share by optimizing the organizational structure and developing products to deliver sustainable value to shareholders, customers and employees.

The strategy comprises five key pillars: Maximizing the efficiency and profitability of packaging products; exiting non-core business segments; focusing on higher-growth markets, including Saudi Arabia and the Gulf region; streamlining the organizational structure and improving operational efficiency; and completing the debt restructuring program and reducing financing costs.