Saudi-listed MEPCO breaks ground on $474mln new paper production line
Saudi-listed Middle East Paper Manufacturing and Production Company (MEPCO) has started construction on its fifth paper production line (PM5).
The project will be managed by Al Tadweer Al Akhdar, a fully-owned subsidiary of MEPCO, the Saudi-listed company said in a statement on Wednesday.
PM5 will double the total production capacity from 425,000 tonnes to 875,000 tonnes annually.
In a filing to the Saudi stock exchange in April 2024, the company set the project's final budget at 1.78 billion Saudi riyals ($474.6 million), including land value. The internal rate of return was estimated at 14.5 percent, with completion expected in the fourth quarter of 2027.
The new production line will enable MEPCO to produce high-quality, low-basis weight paper with energy-efficient technology that reduces operational costs compared to other machines.
PM5 is set to double revenue, create new job opportunities, stimulate economic growth, and support local businesses by prioritising local sourcing and strengthening domestic supply chain, the statement said.
Moreover, PM5 will divert an additional 500,000 tonnes of paper waste from landfills annually, raising MEPCO's total to 1 million tonnes of repurposed paper waste annually.
(Editing by Anoop Menon) (anoop.menon@lseg.com)
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