Saudi's Mepco expansion to double paper production
The Middle East Paper Manufacturing and Production Company (Mepco), a leading paper industry company in the region, has laid foundation for its fifth paper production line (PM5), the largest of its kind in the Middle East.
The project is being managed by Al Tadweer Al Akhdar, a fully-owned subsidiary of Mepco, dedicated to advancing innovative and sustainable paper production solutions.
The new production line (PM5) will double Mepco's total production capacity from 425,000 tons to 875,000 tons annually, strengthening its market position and establishing its dominance in the region. This milestone marks a new era for the company by expanding capacity while introducing a product never before produced in the region, the company said.
PM5 will enable Mepco to produce high-quality, low-basis weight paper with energy-efficient technology that reduces operational costs compared to other machines. This cost-effective alternative will eliminate the need for regional buyers to rely on imports, offering a competitive, locally-produced solution.
By closing the gap on the Kingdom's 30% reliance on imported containerboard, PM5 will empower Saudi Arabia to meet its own demand and become a net-positive exporter of paper products.
But the impact goes beyond numbers, the company said, highlighting:
• Economic Growth: PM5 is set to double Mepco's revenue and reinforce its leadership in the regional market. It will create new job opportunities, stimulate economic growth, and support local businesses by prioritizing local sourcing and strengthening the domestic supply chain, ensuring that the impact of this project extends beyond Mepco's factory walls.
• Sustainability: PM5 will divert an additional 500,000 tons of paper waste from landfills every year, raising Mepco Group's total to 1 million tons of repurposed paper waste annually, a major milestone in advancing the company's circular economy efforts.
Eng Faisal Alawi Haddawi, Group President of Mepco, commented: "PM5 is about the impact it brings to the whole value chain. Doubling our production capacity to 875,000 tons annually will significantly boost Mepco's revenue and create new job opportunities across the value chain. With PM5, we are introducing low-basis weight paper, a first of its kind in the region, offering superior quality and a competitive alternative to imports. Our focus remains on sustainable growth, combining innovation and operational excellence to drive both economic and environmental progress."
Musab Sulaiman Al-Muhaidib, Chairman of the Board of Directors of Mepco, added: "The launch of PM5 marks a transformative leap for Mepco and Saudi Arabia's paper industry. This investment expands our capacity, strengthens the national supply chain, and drives the kingdom's shift from importer to net-positive exporter, reinforcing Saudi Arabia's global competitiveness. It's a bold step that aligns with Vision 2030, accelerating economic diversification and advancing sustainability.'
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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