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MEPCO continues to deliver on its strategic growth ambitions
MEPCO is in the final steps of the project planning and development phase of the largest, high-speed containerboard machine in the region, with a production capacity of 400 K tons and SR 1.5 Bn
investment
Jeddah, Saudi Arabia | October 20,2022 | Middle East Paper Co. (‘MEPCO’), the region’s leading vertically integrated paper manufacturer, announces the approval of the Board of Directors to proceed to the final steps for the feasibility of what will be its largest expansion in the company’s history. The facility will be designed to focus on lightweight containerboard grades, with a total investment estimated at SR 1.5 Bn and an estimated internal rate of return of 15%.
Relying mainly on recovered paper as raw material, the project extends MEPCO’s sustainable practices in the sector, in support of investments into the circular economy.
The project is entering the final stages of its feasibility study and has a target timeline of no more than 33 months from contract signing to start up. These final stages of the planning and development phase will include the finalization of the feasibility study, communication with financial institutions, the selection the technical partner for the project and the mandatory approvals from relevant authorities.
This is an important milestone towards MEPCO’s strategic ambitions to remain the region’s leading paper and packaging producer, solidifying its role within the Kingdom of Saudi Arabia’s vision 2030 and further increasing its contribution to the development of the country’s non-oil exports.
This investment comes parallel to launching its subsidiary JUTHOR’s tissue jumbo roll plant that will commence with commercial operation in 1H 2023.
Abdullah AlMoammar, Board of Director Chairman of MEPCO, commented:
“MEPCO continues to deliver on its promise of dynamic and transformative growth. It gives me great pride to announce this milestone that will cement MEPCO and the Kingdom of Saudi Arabia’s role within the paper and packaging industry in the MENA region.
Building a new paper machine with an estimated production capacity of 400 ktons , will not only double MEPCO’s production capacity, but nearly double MEPCO’s revenues as well. I am honored to be part of the 2 decade history in the making for MEPCO, since its humble beginnings in the early 2000’s.”
Sami AlSafran, President of MEPCO, added:
“The new plant will satisfy the current and future demand through the adoption of the latest paper manufacturing technologies, aiming to serve our growing market share in the MENA region and globally through best-in class automation. Our longstanding role within the Saudi circular economy, pioneering local content requirements and one of the largest non-oil exporters listed on Tadawul remains a proud achievement for us.”
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About MEPCO
MEPCO is the leading, vertically integrated paper manufacturer in the Middle East, offering a diverse range of containerboard and specialty paper products for the packaging, construction, furniture, and paper core industries worldwide. MEPCO supplies its products to the local Saudi market, GCC countries. Its growing global footprint spans over 40 countries, including across South Asia, the Americas and Europe.
The company’s innovative approach, including energy and water-efficient production; enables it to deliver significant environmental and economic benefits. Through its wholly owned subsidiary, WASCO, MEPCO sources raw material from across the Kingdom and neighboring countries, ensuring a secure supply while providing measurable value to the Saudi economy.
MEPCO is listed on the Saudi Stock Exchange under Tadawul symbol ‘MEPCO’. For more information, visit www.mepco.biz.
Investor Relations contacts Email: [email protected] Phone: +966 12 6380111 IR website
