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Yousseri El Bishry, CEO of Saudi Paper Manufacturing Co.
Saudi Paper Manufacturing Co. (SPM) will take a decision on developing the second production line during the next three months, CEO Yousseri El Bishry told Argaam in an exclusive.
The new line is projected to maximize the production capacity by nearly 30,000 tons annually and is one of the projects for which funds were allocated from the capital hike.
El Bishry indicated that SPM’s production capacity reached more than 87,000 tons of tissue paper rolls in 2020, compared to 79,000 tons in 2019.
During Q4 2020, the company produced 21,500 tons of tissue paper rolls, compared to 18,900 tons in the same period a year earlier.
The CEO affirmed that the Saudi market is witnessing improvement and growth, stating that resetting costs enhanced its competitive position in the market.
“SPM succeeded in getting back some clients who had stopped purchasing from the company for years due to lack of production and some previous issues. Thus, we believe their return will improve sales and reflect positively on the financial results,” he added.
Commenting on Al-Juthoor Paper Tissue Manufacturing Plant in Kuwait, the top executive said that majority of the equipment has been tested and the remaining parts will arrive this month.
The plant is expected to start production in Q2 2021, he said, adding its capacity will reach nearly 780 tons per month from the current 450 tons per month after expansion.
The expansion is estimated to contribute about SAR 2.5 million annually to the company’s profit, El Bishry noted.
According to data compiled by Argaam, SPM turned to a net profit after Zakat and tax of SAR 15.1 million for 2020, compared to a net loss of SAR 27.9 million a year earlier.
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