MEPCO aims to double production, eyes carton factory acquisitions: CEO

Faisal Haddawi, CEO of Middle East Paper Co. (MEPCO)

Faisal Haddawi, CEO of Middle East Paper Co. (MEPCO), said demand for the company’s products in Q4 2025 was solid, although prices were lower compared to the second and third quarters due to global market pressures and softer pricing.
 

Speaking to Argaam on the sidelines of the PIF–Private Sector Forum, Haddawi noted that the company’s performance is closely linked to international markets, as it operates in a global commodities sector.
  

The CEO added that the company is fully utilizing its production capacity and manufactures based on confirmed purchase orders.
 

MEPCO currently produces 450,000 tons of paper annually and is completing construction of a new plant with similar capacity, which will raise total production to 900,000 tons by next year.
 

The company produces tissue paper at a factory in King Abdullah Economic City with an annual capacity of 60,000 tons, which is being increased to 120,000 tons through the opening of a new plant by the end of this year.
 

Demand for tissue products is growing at an annual rate of 4%, Haddawi said.
 

He explained that higher fuel prices have impacted the company, particularly due to heavy consumption of fuel oil used in power generation, as paper manufacturing is an energy-intensive industry.
 

MEPCO plans to shift to natural gas in 2028 as part of a strategy to transition to cleaner and more efficient energy sources.
 

Haddawi said the Public Investment Fund’s entry as a partner in 2024 represented a strategic partnership that strengthened governance, sustainability, local content, and the circular economy. He noted that MEPCO is currently operating under four main pillars: expansion, vertical integration, diversification, and operational and commercial improvements.
 

The company is seeking to acquire local carton factories as part of its efforts to reduce exposure to global market volatility, the CEO said.
 

He added that the company is also working with the Ministries of Industry and Commerce to address dumping challenges and customs code manipulation that affect market stability.