KSA: The Booming Corrugated Packaging Industry

Exclusive interview with Mosad Ewais, CEO of Al Medan Project Factory for Carton 

Al Medan project factory for Carton is one of the largest companies in the field of corrugated packaging industry in the Middle East region, and the Kingdom of Saudi Arabia. The company is located on the new Al-Kharj Road near Riyadh, the factory which is spread on a total area of ​​40,000 square meters Manufactures a variety of corrugated sheets for a wide range of applications. The company is a major exporter of corrugated packaging to neighboring countries. The factory also provides high quality printing service on corrugated board for its customers in KSA and beyond. Al-Medan boasts a wide range of customers from different sectors including, agricultural, medical and service industries. In order to find out more about this company and its trajectory we sat down with Mr. Mosad Ewais, company’s CEO. Here are the excerpts:

When was the company established and what was the goals you set out when you started your activities?

The company started its activity in the city of Riyadh in 2010.  We devised an ambitious plan ambitious to produce 75000 of corrugated board by the end of 2020, something that we have achieved.

And where are you planning to go from here?

The company today is in the process of implementing the new expansion plan until 2025.  Our goal is to increase our production capacity to 120000 tons of corrugated boards per year, which will position us among five biggest manufacturers of corrugated boards and Arab companies and the Middle East.  to become one of the five largest companies operating in the same field in the Arab region and the Middle East region. We seek to implement a number of expansion projects within the company during the next 5 years to achieve this goal.

What are your expectations for 2021?

We expect a huge increase of demand for corrugated board in 2021, especially in Saudi Arabia. Also, as the effects of Coronavirus drags on the demand for corrugated boxes will grow. and international shipping operations for the corrugated cardboard industry in the Kingdom for

Do you have branches outside Saudi Arabia?

Yes, the company has an overseas branch in Jordan, in the city of Amman and the branch manages export operations to Jordan, Iraq, Lebanon, Kuwait, Oman and Yemen.

Are you planning to diversify?

Yes. We are always keen to adapt to the new realties and enhance our capabilities in order to enter more countries and explore new markets.

What kind of challenges you faced during Corona Pandemic?

Like so many other countries we have also were affected by pandemic, the economic downward spiral created significant challenges such as increase in shipping costs, disruption in supply chain and delivery of raw materials, which impacted our production lines. But on the other hand, the demand for cardboard packages has increased dramatically, during the past year and current year.  As the world responds to the coronavirus (COVID-19) pandemic, we’re seeing a dramatic shift from in-person to online shopping. This surge in online shopping urgency than before required an unprecedented increase in shipping operations around the world. Amazon announced that it shipped more than 12 billion shipments during past year, and this means a huge jump in for packaging, especially corrugated boxes.

Are you relying more on the internet to receive and process orders?

We do not prefer that.  Our company relies heavily on sales visits and direct sales to customers which requires face to face meeting with customers.

Have you reduced workforce due Corona pandemic?

No. Although we had our fair share of challenges because of despite the high cost of production and long-term closures.

What is the size of your total workforce?

The company has more than 360 employees, including executive and administrative teams.

What range of equipment you have?

We boast 2 corrugating and finishing lines  from MarquipWard United which is part of the BW paper systems. Machine’s capacity is 8000 tons per month. We produce all types of corrugated boards including, E, B, C, EB and EC flute.  Our NT1228 high end printing line plus folder gluer as well as state of the art testing lab and other equipment makes us a very modern and efficient packaging company in heart of Saudi Arabia.