Al-Kharj plant lifts APICO production capacity by 25%: CEO

Kunhair Kandy, CEO of Arabian Plastic Industrial Co. (APICO)

Kunhair Kandy, CEO of Nomu-listed Arabian Plastic Industrial Co. (APICO), said that the company’s third plant, recently inaugurated in Al-Kharj, significantly contributed to expanding its production capacity.

In an interview with Argaam on the company’s H1 2025 results, Kandy said the facility enabled APICO to raise its total production capacity by 25% year on year (YoY), allowing it to respond more flexibly to growing market demand.

He added that APICO has continued to improve operational efficiency through automation, higher quality standards, and cost reductions, supporting stronger profitability.

Kandy said the solid performance reflects the company’s strategic shift from a traditional packaging supplier to a fully integrated solutions provider, enhancing value for clients and opening new growth opportunities.

He noted that moving toward a comprehensive partnership model in packaging solutions has helped APICO maintain healthy margins, supported by the launch of innovative products such as smart orders, dynamic barcode and QR code printing technologies, and custom automation solutions for the industrial sector.

As part of its geographic expansion strategy, APICO extended its regional presence to include Jordan, Iraq, Yemen, and Bahrain, where sales reached SAR 4.92 million in H1 2025, up from SAR 1.17 million during the same period in 2023. This step underscores the company’s ambition to export its innovative products and solutions to new markets.

When asked about expectations for the second half of the year, Kandy expressed confidence in continued positive performance for H2 2025.

APICO, which specializes in manufacturing plastic-based containers and boxes, reported a 100% increase in net profit for H1 2025, reaching SAR 10.6 million, compared to SAR 5.3 million in the year-earlier period, Argaam data showed.