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Logo of Zahrat Al Waha for Trading Co.
Zahrat Al Waha for Trading Co. announced its capital expansion plan for 2023, valued at SAR 70 million, to be financed from its cash flow in order to reduce financing costs (FCs), according to a statement on Tadawul today, April 4.
The capital expansion is set to ramp up Zahrat Al Waha’s market share in the plastics sector locally and globally, diversify and boost sources of income, enhance profitability and financial solvency, maximize shareholders' rights and reduce costs.
The company stated that the capital expansion plan is as follows:
- A production line for polyethylene terephthalate (PET) bottles (preform) with its accessories to raise production capacity and diversify the company's products.
- Two production lines for plastic bottle caps with their accessories to meet increased market demand.
- An expansion plan for the printing and packaging materials business, including land, buildings and constructions, as well as two integrated printing lines with their accessories with an annual production capacity of 3,180 tons, and another two production lines of multi-product and multi-use packaging materials with their accessories with an annual production capacity of 10,850 tons.
Zahrat Al Waha affirmed that all production lines coming under the capital expansion plan were purchased from major European companies.
It stated that the commercial kick-off of the preform production line and the two caps production lines is expected to start by Q3 2023, while that of lines under the expansion plan for the printing and packaging materials business is projected to begin in Q4 2023.
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