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Middle East Paper Co.’s (MEPCO) board of directors approved the preparatory procedures for establishing a cardboard factory with a production capacity of 400,000 tons annually at an investment of nearly SAR 1.5 billion, the company said in a statement published on the Tadawul.
Therefore, the production capacity will double its current capacity, with an expected internal return rate (IRR) of 15%. The factory will be operational within 33 months from the project’s start date.
The move will double the company's sales and enhance its competitiveness by obtaining the latest technology for manufacturing cardboard paper.
The project’s new machine will be the latest, fastest, and largest light cardboard production machine in the Middle East.
MEPCO indicated that the final budget for the project will be determined after finalizing the feasibility studies.
The current phase includes completing feasibility studies, communicating with financial institutions, picking a technical partner for the project, and obtaining the necessary approvals from the relevant government entities.
The project will depend on raw recycled papers, which preserve the environment and enhance sustainability by investing in a circular economy.
This is a part of MEPCO’s strategic plans to maintain its leadership position at the regional level and actively contribute to the national industry as this expansion targets local and global markets and serves Saudi Arabia’s economy in line with Vision 2030.
Project developments and anticipated financial impact will be announced in due course, MEPCO said.
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