ASG unveils details of 4th expansion project in Sudair at SAR 50M

The land lease is part of ASG expansion plans.

ASG Plastic Factory Co. announced details of its fourth expansion project, related to the land lease agreement signed with the Saudi Authority for Industrial Cities and Technology Zones (MODON) to lease an industrial plot in Sudair Industrial City.

The company said in a Tadawul statement that the project's total estimated cost is SAR 50 million, noting that the figure is preliminary and subject to change depending on market conditions and actual execution costs during the various phases of the project.

ASG expects construction and execution works to begin by the end of Q3 2026, with project completion targeted for Q1 2028. Commercial production is also expected to commence during Q1 2028.

The company said it is currently holding discussions with a number of suppliers and consultants to execute the project's construction works. The project will be self-financed, with the possibility of benefiting from financing programs and facilities provided by the Saudi Industrial Development Fund (SIDF) or other financing institutions.

The company further indicated that the project is part of its strategy to expand production capacity to meet growing market demand in line with the Kingdom's development objectives, noting that it will announce any material developments related to the project in due course.

According to data available to Argaam, ASG signed a 20-year lease agreement in June with MODON to lease a 100,380-square-meter industrial plot in Sudair Industrial City.

The annual lease value amounts to SAR 200,750, excluding value-added tax.