Middle East Paper Co. “MEPCO” (1202) has decided to double the production capacity of its “Juthor” factory at SAR 345 million.
New Paper Production Line
The Board of Directors of the regionally leading paper manufacturing company has approved the investment in the sixth tissue paper production line project “TM6.”
This decision comes after MEPCO’s successful expansion through its subsidiary “Juthor,” which specializes in producing tissue paper and jumbo roll paper.
So what
The project aims to increase the production capacity of the “Juthor” factory located in King Abdullah Economic City from 60,000 tons to 120,000 tons.
MEPCO hopes that this expansion will meet the demands of both local and international markets.
Some context
MEPCO clarified that the project will be primarily funded through government funding, bank loans, and part of the proceeds from the Public Investment Fund’s (PIF) investment in the company.
In January 2024, the Saudi sovereign fund acquired approximately 23% of MEPCO’s shares by subscribing to new shares issued by the company to increase its capital.
The value of the transaction was approximately 630 million riyals ($168 million) after subscribing to about 20 million shares.
Now what
MEPCO expects the project to have a “positive impact” on its results following the start of commercial operation in the fourth quarter of 2026.
