Riyadh - Mubasher: The Saudi Paper Manufacturing Company has reached a SAR 300 million agreement with TOSCOTEC, an Italian manufacturer of paper machines, to purchase a new machine in the second industrial city in Saudi Arabia's Dammam and produce tissue paper rolls.
The fifth production line has a capacity of 60,000 tonnes annually, raising the company's total production capacity to 190,000 tonnes from 130,000 tonnes per year, according to a bourse filing on Sunday.
The transaction will enable the company to raise its market share and expand national exports to the Middle East and some other countries.
The project will be financed through the company's operating revenues, the sale of some non-operating assets, and the proceeds of legal claims for which judgments were issued in favor of the company, in addition to banks and local financing agencies.
The company's financial impact is expected to be reflected in the third quarter (Q3) of 2024.
