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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