APICO signs land lease agreement with MODON to establish new plant

Logo of Arabian Plastic Industrial company

Arabian Plastic Industrial Co. (APICO) signed a 20-year land lease agreement with the Saudi Authority for Industrial Cities and Technology Zones (MODON), at an annual lease value of SAR 68,541, or SAR 1.4 million in total, excluding value-added tax (VAT).

The land, covering a total area of 34,300 square meters (sqm), is located in Al-Kharj, Riyadh, the plastic manufacturer said in a statement to Tadawul.

APICO said there are plans to establish a new plant to meet the increasing retail demand and adapt the development and progress that are taking place in the Kingdom's Central and Eastern regions.

The targeted expansion is expected to increase the production capacity by more than 6,500 metric tons. The relevant financial impact shall appear upon the completion of the project’s implementation and start of production, APICO added, indicating that the increase in revenue arising from expansion is estimated at 40% over the first three years of the project.

The plastic manufacturer stated that there are no related parties and any significant developments related to the project will be announced in due course.