Logo of Middle East Paper Co. (MEPCO)
Middle East Paper Co. (MEPCO) will launch the trial operations at Juthor Paper Manufacturing Co. in Q2 2023, followed by commercial operations.
The project is 85% complete, the company said in a statement on Tadawul.
The total investment cost increased from SAR 338 million to SAR 365.5 million due to higher shipping costs and global material price increases.
Juthor project will produce jumbo tissue rolls for facial tissues, pocket tissues, napkins, toilet tissues, kitchen towels and C-fold paper.
The change in the project’s launch date was due to the delays in equipment delivery due to global logistics challenges and interruptions due to the COVID-19 pandemic, the statement added
The financial impact of the delay will be assessed after the plant’s start-up.
In December 2020, MEPCO’s board of directors approved the establishment of a tissue paper and hygienic paper jumbo rolls production plant at an estimated cost of SAR 338 million, according to data compiled by Argaam.
The company expected construction to be completed by Q4 2022 while trial run and commercial operations were anticipated in Q1 2023.
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