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Logo of Saudi Paper Manufacturing Co. (SPM)
Saudi Paper Manufacturing Co. (SPM) signed an agreement of understanding with the Italian company, TOSCOTEC, to purchase a new machine (fifth production line) in the Dammam 2nd. Industrial City, to produce tissue paper rolls with a production capacity of 60,000 tons annually at the total cost of SAR 300 million, the company said in a statement to Tadawul today, June 5.
The new expansion project will be financed through the company’s operating revenues, sale of some non-operating assets, proceeds of legal claims for which judgments were issued in its favor and part through banks and local financing agencies.
The total production capacity will reach 190,000 tons annually to increase its market share and support national exports in line with the 2030 plan, including the Middle East and some other countries.
The financial impact of this deal will be reflected on the machinery and equipment, as well as the obligations in the value of the contract payments in conjunction with their payment. The deal’s financial impact will start as soon as the machine is installed.
TOSCOTEC is one of the largest manufacturers of paper machines in the world. It provides the latest technologies and customized solutions for major paper producers worldwide. The company’s technology aims to achieve maximum production efficiency, reduce consumption, operational costs and finished products with the highest quality and respect for the environment.
Any developments will be announced in due course, the statement noted.
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