MEPCO CEO says prices head for stability, output at 210,000 tons in H1 2022

Middle East Paper Co. (MEPCO) CEO Sami Safran

Prices are heading towards stability and may witness some decline during Q3 2022 on global recession expectations, Middle East Paper Co. (MEPCO) CEO Sami Safran told Argaam in a phone interview. 

MEPCO considers the importance of meeting local and global demand as well as maintaining strong sales.

He added that the company reported a production volume of 210,000 tons in H1 2022, expecting to maintain such output in Q3 2022.

MEPCO succeeded in boosting its sales volume by 45% year-on-year (YoY) in Q2 2022, to fulfill local and global demand.

He indicated that this is due to the rise in global prices, in addition to higher demand for packaging paper, which contributed to an increase in local sales volume to satisfy local demand as a result of the Kingdom’s economic recovery.

By 2020-end, global prices for packaging paper surged on industry recovery, which led to a quarter-on-quarter (QoQ) rise of 4% in the selling prices of MEPCO’s end products between Q1 and Q2 2022.

Safran asserted that MEPCO is able to control the input cost mainly due to its ownership of WASCO Co., which provides the factory with raw materials.

The CEO pointed out that 55% of construction works at its paper tissue factory are done as MEPCO began the installation work in tandem with the equipment's arrival.

Safran said his company is currently in the recruitment phase in preparation for the start of operations by next year, which will represent approximately 25% annually of the local market needs.