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MEPCO completes feasibility study for new containerboard line, PM5, with production capacity of 450,000 tons, approves final investment of approximately 1.78B Saudi riyals; work with Voith set to begin in Q3 and last 42 months, with start-up in Q4 2027

Apr 23, 2024 Press Release 2 min read

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April 23, 2024 (press release) –

Introduction

Referring to the company's previous announcement on 20/10/2022 G on the Tadawul website regarding the start of the preparatory procedures phase for the new containerboard paper plant project.

The Middle East Paper Company announces the start of the Fifth paper Line (PM5), with a production capacity of 450,000 tons, where the feasibility study for the project has been completed. The final budget for the project has been approved for a total amount of approximately 1.78 billion Saudi riyals, which includes the value of the project land, with an internal rate of return estimated at 14.5%, 42 Months for completion of the project.

Also, establishing a new limited liability company to manage the project has been approved.

Date of Board Resolution in Regard to the Project

2024-04-22 Corresponding to 1445-10-13

Project Start Date

Q3, 2024

Project Cost

1.78 billion SAR

Financing method for the project

The Project will be funded by the Company’s internal resources, by long-term loans from local banks and use of funds resulting from the issuance of the shares to the Public Investment Fund.

Expected completion date of the project

Q4, 2027

Expected Financial Impact of the Project on the Company’s Results

The financial impact will be reflected in the financial statements for the fourth quarter of 2027

The Start of the Expected Impact of the Project on the Company’s Results

Starting from Q4 2027

Expected Date for the Pilot Production of the Project to Begin

Q4, 2027

Duration of the pilot production of the project

1 Month

Expected date for the commercial production of the project

Q4, 2027

Executing Party/Counter Party in the Project/Contract

J.M. Voith SE & Co. KG Company

Related Parties

No related parties

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