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Middle East Paper Co.'s (MEPCO) board of directors approved on Dec. 7 the establishment of tissue paper and hygienic paper jumbo rolls production plant at an estimated cost of SAR 338 million, the firm said in a statement to Tadawul.
The project, which is expected to have an annual production capacity of 60,000 tons, will be established on the company's land in the Industrial Valley in King Abdullah Economic City (KAEC).
It is aimed at meeting the market needs and diversifying the company's products. The construction is set to start in Q1 2021, and is expected to be completed by Q4 2022.
The project will mainly be funded by the Industrial Development Fund and through bank loans, along with the company's own resources.
According to the company, the project will begin to have a positive impact on its results after commercial operation in Q1 2023. Trial operation is also slated to begin in Q1 2023.
MEPCO also said it will announce later the other party in the project, immediately upon signing the related contract. There are no related parties at the date of the announcement.
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