Paper Home’s production capacity rises to 17,000 tons; SAR 60M allocated for expansion: CEO

Al-Maghrabi further explained that the company added a new production line to meet rising market demand, raising its production capacity during H1 2026 to around 17,000 tons, compared with 12,000 tons in H1 2025. He expects capacity to increase to around 20,000 tons in H2 2026.

He added that an improved product mix and stable supply chains, together with growing demand for paperboard packaging products, supported the company’s revenue during the six-month period.

As regards the impact of regional conditions, Al-Maghrabi said geopolitical volatility affected shipping costs and prices of imported raw materials, particularly raw paper, while also causing global price fluctuations.

“We are working to mitigate the impact of these factors by diversifying our supply sources and relying relatively more on the domestic market, which has helped reduce the impact of price volatility compared with peers that are more dependent on imports,” said the CEO.

Prices of the company’s paper and cardboard products rose by around 3% year-on-year, reflecting fluctuations in global raw material prices. Product prices are expected to remain relatively stable during the second half of the year, with the possibility of slight increases depending on developments in raw material costs, according to the top executive.

Al-Maghrabi also revealed that Paper Home is currently evaluating several expansion opportunities through its relevant committees, noting that it has allocated around SAR 60 million for business expansion. Details of these opportunities will be announced once the relevant procedures have been completed.

Regarding plans to move to Tadawul’s Main Market, Al-Maghrabi said the company is evaluating the available options for making the transition during the current year, with any material developments to be announced in accordance with the requirements of the Capital Market Authority.

According to data available with Argaam, Paper Home’s net profit to SAR 10.9 million in H1 2026, up 61% from SAR 6.7 million in the same period a year earlier.