Middle East Paper Co. (MEPCO) has announced on the Tadawul stock exchange that progress on its Juthor project, the 60,000 tons per annum tissue jumbo roll manufacturing facility, has reached 85%, and that the expected date of completion is set for the second quarter of 2023.
By then, the facility will have finished a test run producing rolls for facial tissues, pocket tissues, kitchen towels, toilet tissues and others, and is prepared for a commercial launch.
The Juthor Project, located in the Industrial Valley of King Abdullah Economic City (KAEC), and valued at $97.4mn (SAR365.5mn) after the initial $90.1mn (SAR338mn), ran into delays when equipment delivery had to be rescheduled due to worldwide logistics challenges and interruptions during the Covid-19 pandemic. The altered investment value is attributed to rises in shipping costs and global materials prices.
Diversification in MEPCO
MEPCO commenced earthmoving work, which was followed by a series of civil, mechanical, and electrical engineering activities, on Dec 2021 following the board of directors’ approval to establish a factory in order to diversify the company’s range of products and meet the demand for hygienic paper products.
Counting the pros of the Juthor project, Eng. Sami Al Safran, President of MEPCO, said: “This project has multiple dimensions that extend beyond its economic value. We aim to reduce Saudi Arabia’s imports of tissue products through building and expanding our capabilities locally, boosting the contribution of paper products sector’s contribution to the non-oil segment of GDP. The facility will employ more than 100 employees in its first year of operations.”