Zahrat Al Waha begins installation of 2 plastic preform production lines

Zahrat Al Waha for Trading Co. has started installing the plastic preforms production lines, purchased from Husky Injection Molding Systems, the company said in a bourse statement on Sunday.

The new lines will boost the company’s annual production capacity by 14%, increase sales to meet local and overseas demand, and grow Zahrat Al Waha’s market share in the plastics sector locally and overseas.

The move will also contribute to enhancing the company’s profitability.

The new production lines were 30% financed from the company’s cash resources, 34% from medium-term bank loans and 36% from short-term Islamic facilities.

The facilities will be repaid at the beginning of Q3 2020, reducing the company’s liabilities to 34%.

The installation, trial and commercial operations are forecast to commence in the third quarter of the year, the statement added.