Paper Manufacturing inks MOU with Italian TOSCOTEC to buy production line

The Saudi Paper Manufacturing Company would like to announce that it has concluded an agreement of understanding with the Italian company TOSCOTEC, which is one of the largest manufacturers of paper machines in the world, to supply a new machine (the fifth production line for the Saudi Paper Manufacturing Co.) in the second industrial city in Dammam, to produce tissue paper rolls with a production capacity of 60 thousand tons annually, thus bringing the total capacity The productivity of the company to 190,000 tons annually, in order to increase its market share and support national exports in line with the 2030 plan, to include the Middle East and some other countries.

The company added in a statement published on Tadawul that the financial impact of this deal will be reflected on the machinery and equipment, as well as the obligations in the value of the contract payments and in conjunction with their payment, and the financial impact of the deal will start as soon as the machine is installed.

Additional Information:

Approximate value of 300,000,000 Saudi riyals.

Funding method: – The new expansion project will be financed through the company’s operating revenues and the sale of some non-operating assets, in addition to the proceeds of legal claims for which judgments were issued in favor of the company, and part through banks and local financing agencies.

Reasons for the agreement: –

Increasing the company’s production capacity of raw tissue paper rolls from 130,000 tons to 190,000 tons.

The agreement of understanding was signed with the Italian company Toscotec that provides the latest technologies and customized solutions for major paper producers around the world, Toscotec technology aims to achieve maximum production efficiency, reduce consumption, operational costs and finished products with the highest quality and respect for the environment.

The company will announce later any developments in this regard.

It is expected to be in the third quarter of 2024.