Saudi Paper CEO says exports account for 10% of sales

Saudi Paper Manufacturing Co. (SPM) generates most of its revenues from the local market, while exports account for nearly 10% of the total sales volume, CEO Yousseri El Bishry told CNBC Arabia. 

The company’s operations were relatively hit by the close of the industrial city and the difficulties faced by the staff to go into and out of the city, amid the COVID-19 pandemic outbreak. However, the paper manufacturer reported robust results, thanks to its distribution channels and penetration.  

Saudi Paper’s capital hike aims to boost production capacity, El Bishry said, adding that it will also help reduce costs, retain its market foothold and increase its market share. 

The company needs 8,000 tons of raw materials monthly. It has concluded contracts with major companies to secure its purchases for several years to come, while it currently has contracts to secure its needs for the upcoming three months, said the top executive.
 

According to El Bishry, Saudi Paper rescheduled its SAR 650 million loans over a period of seven years, and plans to conduct an in-depth market study to determine whether it would raise more loans.
 

Saudi Paper's shareholders, in a general assembly meeting held yesterday, gave the go-ahead for raising the company's capital through a SAR 100 million rights issue, according to Argaam's data.