Latest news with #Mepco
Zawya
27-06-2025
- Business
- Zawya
Mepco unit breaks ground on tissue manufacturing facility at Saudi's KAEC
Middle East Paper Company (Mepco), one of the largest paper manufacturers in the region, has announced that its key unit - Juthor Paper Manufacturing Company - has broken ground on TM6 - the second production line for tissue manufacturing at King Abdullah Economic City (KAEC) - near Jeddah. TM6, which is being set up at a total investment of SAR345 million ($92 million), will significantly expand Juthor's manufacturing output, increasing annual capacity to 120,000 tonnes and operating at a speed of 2,100 m per minute. Andritz, an Austria-based international technology group, will be assisting Juthor in the project by providing advanced plants, equipment, services, and digital solutions, to the group. It will also be responsible for the manufacture, supply, and installation of the facility within a two-year period. TM6 supports Saudi Arabia's Vision 2030 by advancing local manufacturing, reducing reliance on imports, creating skilled jobs, and adhering to world-class environmental standards. The groundbreaking ceremony was attended by senior representatives from different government and private entities like Modon and Economic Cities and Special Zones Authority along with the Juthor and Mepco senior leadership teams. Commenting on the launch, Musab Al-Muhaidib, the Chairman of the Board at Mepco Group, said: "The launch of TM6 is a testament to our unwavering belief in Saudi Arabia's industrial future. As we align with Vision 2030, this expansion strengthens our role in enabling local manufacturing and advancing the Kingdom's self-sufficiency in the tissue sector." The facility will utilise cutting-edge technology and sustainable manufacturing methods to align with Mepco's environmental goals, including efficient resource use and minimizing carbon emissions," he stated. Mepco Group President Eng. Faisal Haddawi said: "We do not simply build capacity - we build value, resilience, and trust. TM6 will accelerate our strategy for sustainable growth while deepening our contribution to the Saudi economy and regional markets." Juthor remains committed to continuous investment in manufacturing innovation to meet the growing demand for high-quality tissue paper products in the Kingdom and the wider Mena region, he added. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Express Tribune
13-06-2025
- Business
- Express Tribune
Consumers demand audit before tariff hike
Listen to article Consumers have called for an audit of power distribution companies (DISCOs), following the latter's request to the regulator to approve the collection of Rs455 billion through an increase in electricity rates. The regulator — the National Electric Power Regulatory Authority (Nepra) — conducted a public hearing on Friday to consider the interim tariff applications of eight DISCOs. They have asked for approval of a total revenue of Rs455 billion for the next financial year, to be recovered from electricity consumers. "Before giving the go-ahead to the interim tariff increase, the regulator should conduct an audit of these companies," the interveners said during the hearing. Tanveer Bari, a representative of the Karachi Chamber of Commerce and Industry (KCCI), stressed that the companies should present their investment plans. He noted that DISCOs were incurring higher losses compared to the targets set by Nepra, adding that the government was going to impose a surcharge for five years to reduce circular debt. The petitions, under the multiyear tariff (MYT) regime covering the period from financial year 2025-26 to 2029-30, have been filed by the Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco), Quetta Electric Supply Company (Qesco), Sukkur Electric Power Company (Sepco), Hyderabad Electric Supply Company (Hesco), Peshawar Electric Supply Company (Pesco), Tribal Areas Electric Supply Company (Tesco) and Hazara Electric Supply Company (Hazeco). The revenue requirements of DISCOs show a significant financial burden in the upcoming fiscal year, which may be passed on to consumers. Mepco has cited the highest interim revenue requirement of Rs139.1 billion, followed by Pesco at Rs81.4 billion, Gepco Rs67.8 billion, Sepco Rs58 billion, Qesco Rs50.1 billion, Hesco Rs39.4 billion, Hazeco Rs12.3 billion and Tesco Rs7.3 billion. Mepco has also made a higher demand on account of operation and maintenance (O&M) cost at Rs63.1 billion, largely driven by staff pay and allowances of Rs22.3 billion, post-retirement benefits of Rs29 billion and repair and maintenance expenses of Rs7.8 billion. Gepco has estimated O&M cost at Rs35.3 billion, including Rs16.6 billion for pay and allowances and Rs13.8 billion for retirement benefits. Pesco has put its O&M cost at Rs37 billion, with Rs32.7 billion for salaries. Other companies have also quoted sizeable O&M allocations. Hesco has mentioned Rs25.1 billion, Sepco Rs22.2 billion, Qesco Rs17 billion, Tesco Rs3.8 billion and Hazeco Rs7.8 billion. Depreciation and the return on rate base (RORB) form another significant part of the cost buildup. Mepco has again topped the list with Rs8.9 billion worth of depreciation and Rs16.3 billion in RORB. Gepco follows with Rs4.8 billion in depreciation and Rs8.8 billion in RORB. Pesco has sought Rs5.6 billion and Rs12.3 billion under the same heads while Hesco has demanded Rs3.2 billion in depreciation and Rs6.8 billion in RORB. Qesco's RORB is estimated at Rs15.7 billion alongside Rs297 million for depreciation. Some DISCOs have sought adjustments for prior years as well, which results in an increase in their revenue requirements. Mepco has claimed Rs59.5 billion, Pesco Rs29.3 billion, Gepco Rs24.4 billion and Sepco Rs25.6 billion. Qesco and Hesco have requested Rs16.3 billion and Rs5.8 billion, respectively, while Tesco and Hazeco have not included prior year adjustments. Tesco and Sepco have also factored in bad debt provisions, with Rs1.6 billion and Rs5.6 billion, respectively. Sepco has estimated Rs1.6 billion in finance costs.
Express Tribune
07-06-2025
- Business
- Express Tribune
DISCOs seek recovery of billions
Listen to article Electricity consumers are expected to face a tariff hike in financial year 2025-26 under the multiyear tariff regime. A majority of power distribution companies (DISCOs) have submitted petitions to the power-sector regulator, seeking the recovery of billions of rupees from consumers to meet their annual revenue requirements. The National Electric Power Regulatory Authority (Nepra) will conduct a public hearing on June 13 in response to the petitions. All eight government-owned DISCOs have approached Nepra with requests for an interim tariff increase for fiscal year 2025-26. The petitions, under the multiyear tariff (MYT) regime covering the period from FY 2025-26 to FY 2029-30, have been filed by Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco), Quetta Electric Supply Company (Qesco), Sukkur Electric Power Company (Sepco), Hyderabad Electric Supply Company (Hesco), Peshawar Electric Supply Company (Pesco), Tribal Areas Electric Supply Company (Tesco) and Hazara Electric Supply Company (Hazeco). The revenue requirements of these DISCOs show a significant financial burden for the upcoming fiscal year, which may be passed on to consumers. Mepco has sought the highest interim revenue requirement of Rs139.1 billion, followed by Pesco at Rs81.4 billion, Gepco at Rs67.8 billion, Sepco at Rs58 billion, Qesco at Rs50.1 billion, Hesco at Rs39.4 billion, Hazeco at Rs12.3 billion and Tesco at Rs7.3 billion. Mepco has also made a higher demand on account of operations and maintenance (O&M) cost at Rs63.1 billion, largely driven by staff pay and allowances of Rs22.3 billion, post-retirement benefits of Rs29 billion, and repair and maintenance expenses of Rs7.8 billion. Gepco reported O&M cost of Rs35.3 billion, including Rs16.6 billion for pay and allowances and Rs13.8 billion for retirement benefits. Pesco's O&M cost was estimated at Rs37 billion, with Rs32.7 billion alone allocated to salaries. Other companies also cited sizeable O&M allocations. Hesco claimed Rs25.1 billion, Sepco Rs22.2 billion, Qesco Rs17 billion, Tesco Rs3.8 billion and Hazeco Rs7.8 billion. Depreciation and the return on rate base (RORB) formed another significant part of the cost buildup. Mepco again topped the list with Rs8.9 billion in depreciation and Rs16.3 billion in RORB. Gepco followed with Rs4.8 billion in depreciation and Rs8.8 billion in RORB. Pesco sought Rs5.6 billion and Rs12.3 billion under the same heads, while Hesco demanded Rs3.2 billion in depreciation and Rs6.8 billion in RORB. Qesco's RORB was estimated at Rs15.7 billion alongside Rs297 billion for depreciation. Some power distribution companies have sought adjustments for prior years as well, which resulted in an increase in revenue requirements. Mepco claimed Rs59.5 billion, Pesco claimed Rs29.3 billion, Gepco sought Rs24.4 billion and Sepco requested Rs25.6 billion. Qesco and Hesco requested Rs16.3 billion and Rs5.8 billion, respectively, while Tesco and Hazeco did not include prior year adjustments. Tesco and Sepco also factored in bad debt provisions, with Rs1.6 billion and Rs5.6 billion respectively. Sepco also reported Rs1.6 billion in finance costs. To consider these petitions, Nepra has scheduled a public hearing on June 13 and invited all parties to submit their views and comments in response to the revenue requirements made by the distribution companies.
Trade Arabia
03-03-2025
- Business
- Trade Arabia
Mepco expansion to double paper production
The Middle East Paper Manufacturing and Production Company (Mepco), a leading paper industry company in the region, has laid foundation for its fifth paper production line (PM5), the largest of its kind in the Middle East. The project is being managed by Al Tadweer Al Akhdar, a fully-owned subsidiary of Mepco, dedicated to advancing innovative and sustainable paper production solutions. The new production line (PM5) will double Mepco's total production capacity from 425,000 tons to 875,000 tons annually, strengthening its market position and establishing its dominance in the region. This milestone marks a new era for the company by expanding capacity while introducing a product never before produced in the region, the company said. PM5 will enable Mepco to produce high-quality, low-basis weight paper with energy-efficient technology that reduces operational costs compared to other machines. This cost-effective alternative will eliminate the need for regional buyers to rely on imports, offering a competitive, locally-produced solution. By closing the gap on the Kingdom's 30% reliance on imported containerboard, PM5 will empower Saudi Arabia to meet its own demand and become a net-positive exporter of paper products. But the impact goes beyond numbers, the company said, highlighting: • Economic Growth: PM5 is set to double Mepco's revenue and reinforce its leadership in the regional market. It will create new job opportunities, stimulate economic growth, and support local businesses by prioritizing local sourcing and strengthening the domestic supply chain, ensuring that the impact of this project extends beyond Mepco's factory walls. • Sustainability: PM5 will divert an additional 500,000 tons of paper waste from landfills every year, raising Mepco Group's total to 1 million tons of repurposed paper waste annually, a major milestone in advancing the company's circular economy efforts. Eng Faisal Alawi Haddawi, Group President of Mepco, commented: "PM5 is about the impact it brings to the whole value chain. Doubling our production capacity to 875,000 tons annually will significantly boost Mepco's revenue and create new job opportunities across the value chain. With PM5, we are introducing low-basis weight paper, a first of its kind in the region, offering superior quality and a competitive alternative to imports. Our focus remains on sustainable growth, combining innovation and operational excellence to drive both economic and environmental progress." Musab Sulaiman Al-Muhaidib, Chairman of the Board of Directors of Mepco, added: "The launch of PM5 marks a transformative leap for Mepco and Saudi Arabia's paper industry. This investment expands our capacity, strengthens the national supply chain, and drives the kingdom's shift from importer to net-positive exporter, reinforcing Saudi Arabia's global competitiveness. It's a bold step that aligns with Vision 2030, accelerating economic diversification and advancing sustainability.' –
Zawya
03-03-2025
- Business
- Zawya
Saudi's Mepco expansion to double paper production
The Middle East Paper Manufacturing and Production Company (Mepco), a leading paper industry company in the region, has laid foundation for its fifth paper production line (PM5), the largest of its kind in the Middle East. The project is being managed by Al Tadweer Al Akhdar, a fully-owned subsidiary of Mepco, dedicated to advancing innovative and sustainable paper production solutions. The new production line (PM5) will double Mepco's total production capacity from 425,000 tons to 875,000 tons annually, strengthening its market position and establishing its dominance in the region. This milestone marks a new era for the company by expanding capacity while introducing a product never before produced in the region, the company said. PM5 will enable Mepco to produce high-quality, low-basis weight paper with energy-efficient technology that reduces operational costs compared to other machines. This cost-effective alternative will eliminate the need for regional buyers to rely on imports, offering a competitive, locally-produced solution. By closing the gap on the Kingdom's 30% reliance on imported containerboard, PM5 will empower Saudi Arabia to meet its own demand and become a net-positive exporter of paper products. But the impact goes beyond numbers, the company said, highlighting: • Economic Growth: PM5 is set to double Mepco's revenue and reinforce its leadership in the regional market. It will create new job opportunities, stimulate economic growth, and support local businesses by prioritizing local sourcing and strengthening the domestic supply chain, ensuring that the impact of this project extends beyond Mepco's factory walls. • Sustainability: PM5 will divert an additional 500,000 tons of paper waste from landfills every year, raising Mepco Group's total to 1 million tons of repurposed paper waste annually, a major milestone in advancing the company's circular economy efforts. Eng Faisal Alawi Haddawi, Group President of Mepco, commented: "PM5 is about the impact it brings to the whole value chain. Doubling our production capacity to 875,000 tons annually will significantly boost Mepco's revenue and create new job opportunities across the value chain. With PM5, we are introducing low-basis weight paper, a first of its kind in the region, offering superior quality and a competitive alternative to imports. Our focus remains on sustainable growth, combining innovation and operational excellence to drive both economic and environmental progress." Musab Sulaiman Al-Muhaidib, Chairman of the Board of Directors of Mepco, added: "The launch of PM5 marks a transformative leap for Mepco and Saudi Arabia's paper industry. This investment expands our capacity, strengthens the national supply chain, and drives the kingdom's shift from importer to net-positive exporter, reinforcing Saudi Arabia's global competitiveness. It's a bold step that aligns with Vision 2030, accelerating economic diversification and advancing sustainability.' Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
