Raoom develops glass, plastic production lines: CEO

He added that production is expected to start at the end of next October.

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The company plans to develop two production lines (Lexan, Polycarbonate, and Acrylic), with a production capacity of up to 800 kilogram per hour for each line, Al-Hamid said, noting that the two lines are likely to be implemented early next year.

Al-Hamid also expected an increase in demand for the company's products in H2 2024 and in the coming years, thanks to major projects such as NEOM and The Line, noting that the construction method has changed, as glass now constitutes 60–70% of the building facades.

Glass products account for about 75% of the company's total revenues and are considered the most profitable, followed by plastics with 25%.

The company is working on implementing an expansion plan in glass and plastic products with the aim of enhancing sustainability and full control of the manufacturing processes, improving efficiency, reducing production costs, and increasing profit margins, according to the CEO.

He explained that the current production capacity of the glass lines is about 20,000 square meters per day, while the production capacity of the plastic lines reaches about 22,000 kg per day.

Al-Hamid stressed that expanding the production lines will effectively meet market needs as well as increase market share and exports.

Commenting on H1 2024 financials, Al-Hamid said Raoom's performance was robust as the company always strives for the best, which is the main goal of its board and employees, stressing that he is optimistic about the company's efforts to achieve sustainable growth that directly benefits its investors.

Raoom is not currently studying acquisitions after canceling the memorandum of understanding to acquire Qassim Corrugated Box Factory Co., said the CEO, indicating that Raoom may study this option later whenever the acquisition serves the company and its shareholders.

He stressed that the board of directors aims to diversify the sources of income as well as boost revenues and profitability while continuing quarterly dividend distributions and working on expansion and growth.

According to data available with Argaam, Raoom reported a net profit rise of 2% to SAR 28.3 million in the first half of 2024, compared to SAR 27.7 million a year earlier, thanks to the lower cost of goods sold.