MEPCO to double Juthor tissue paper capacity at SAR 345M

18/08/2024 ِArgaam
Middle East Paper Co. (MEPCO)headquarters

Middle East Paper Co. (MEPCO) headquarters


Middle East Paper Co. (MEPCO) said, on Aug. 15, that its board of directors gave the go-ahead for doubling production capacity of Juthor Paper Manufacturing Co. by adding the tissue paper production line 6 project (TM6) at a total value of SAR 345 million.

 

In a statement to Tadawul, MEPCO said it aims to ramp up the production capacity of King Abdullah Economic City-based Juthor, which produces jumbo tissue rolls, by 60,000 tons to 120,000 tons. The move will fulfill local and international market demand.

 

For more news and details on the projects

 

The project will be financed mainly by government financial institutions, bank loans, and the proceeds of the recent investments by the Public Investment Fund (PIF) into MEPCO. The production line contractor will be announced later upon signing the deal.

 

Construction will start in Q4 2024, MEPCO added, expecting trial production to commence in the third quarter of 2026 for one month. Project completion and commercial production are scheduled for Q4 2026.

 

MEPCO expects a positive financial impact to appear after commercial operation in Q4 2026.

 

There are no related parties to the deal as of the announcement date.

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