The Middle East Paper Company (MEPCO) has announced plans to begin construction of its 345 million Saudi riyals ($91.94 million) tissue paper production line, known as Line 6, in the fourth quarter of 2024, according to a statement released by the company on the stock exchange.
This new production line, located at the Juthor plant within the King Abdullah Economic City (KAEC), is set to boost the plant’s output by 60,000 tonnes, bringing the total annual production capacity to 120,000 tonnes. The increased capacity is aimed at meeting the rising demand in both local and international markets.
MEPCO plans to start trial production in the third quarter of 2026, with the trial phase lasting one month. Commercial production is anticipated to commence in the fourth quarter of 2026.
The project will be primarily financed through government financial institutions, bank loans, and recent investments from the Public Investment Fund (PIF), which recently acquired a significant stake in MEPCO.
The selection of a machine supplier is currently in progress and will be announced once the contract is finalized.
Earlier this year, the PIF announced the acquisition of a 23.08 percent stake in MEPCO, achieved through a capital increase and subscription to new shares, further supporting the company’s expansion efforts.
