APICO signs MoU to establish expanded polypropylene plant

The MoU seeks to explore the feasibility of cooperation and establish the specialized manufacturing facility

Arabian Plastic Industrial Co. (APICO) signed a non-binding memorandum of understanding (MoU) on Feb. 10 with K. K. Nag to establish a specialized manufacturing facility for expanded polypropylene (EPP) products.

In a Tadawul statement, the company said the MoU aims to define the framework of understanding regarding the initial mutual obligations and rights between the two parties.

It also seeks to explore the feasibility of cooperation and establish the plant, as part of APICO’s expansion plans to enhance its production capacity and meet demand in industrial sectors.

The MoU comes into effect from the date of its signing until March 31, 2027, or until the signing of the agreement.

The deal does not involve any related parties, the company said, adding that there is currently no financial impact.