A look at Saudi Top Trading’s products, sales

Logo of Saudi Top Plastic Trading Co.

Saudi Top Plastic Trading Co. (STP) issued on Oct. 16 the prospectus to float 880,000 shares, or 22% of capital, on Nomu-Parallel Market.

STP’s core business portfolio comprises the purchase of various plastic and rubber waste from the municipality and others sources, such as petrochemical companies, plastic and rubber producers. The company further recycles the waste to produce plastic granules.

The company produces nine key products, including the processed polyethylene wax, using the latest technologies. It also promotes and sells various products in a number of countries in Asia, Europe and Africa, and buys plastic materials and resells them in the local market.

**Plastics and wooden products

STP’s revenue increased 92% to nearly SAR 192 million by end of 2021, compared to SAR 100 million for 2020. Revenue from exports accounted for 85% of total revenue versus 19% for the local market.

STP is seeking to expand the number of targeted destinations from 30 markets to 50 over the coming two years, to include North America, South America, Central and South Africa, and Australia.

It further seeks to expand business portfolio to 27 products, from 20, in addition to grabbing more domestic market share.

The company exports a big portion of its output, which helps diversifying sources of revenue, while eliminating risks pertaining to company’s dependence on one market.

STP capitalizes on supplies of raw materials in the production operations, as it secured long-term exclusive contracts to purchase wastes of the petrochemicals firms, which ensures continued supply and production.