The Middle East Paper Company (MEPCO), the Jeddah-based paper manufacturer, has approved investment in an additional Tissue Machine (TM6) at an estimated cost of 345 million Saudi riyals at its Juthor factory located in King Abdullah Economic City (KAEC).
The project aims to increase MEPCO’s production capacity by an additional 60,000 tonnes of hygienic jumbo tissue paper rolls annually, bringing the factory’s total production capacity to 1,20,000 tonnes. The expansion is expected to meet the demands of both the local and international markets.
The project will be completed within 24 months and is expected to have a positive impact on the company’s results after the commencement of commercial operations in the fourth quarter of 2026.
The project is a significant step towards MEPCO’s strategic ambitions, reinforcing its leadership in the paper and tissue industry and contributing to the growth of the Saudi Arabian economy. The project also aligns with the Kingdom’s Vision 2030 goals of economic diversification and import substitution.
The project will be financed mainly by government financial institutions, bank loans, and the proceeds of the recent investment by the Public Investment Fund (PIF) in MEPCO.
“The TM6 expansion project marks a significant milestone in MEPCO’s growth trajectory. By investing in state-of-the-art tissue production technology and expanding our manufacturing footprint in the Kingdom of Saudi Arabia, we are not only increasing our production capacity but also reaffirming our commitment to meeting the evolving needs of our customers both domestically and regionally. This strategic investment aligns with our vision of leading the paper industry in the Middle East while contributing to the Kingdom’s economic diversification goals,” says MEPCO acting CEO Rob Jan Renders.
Conveniently located close to King Abdullah Port, Juthor Paper Manufacturing Company is a fully-owned subsidiary of MEPCO specialized in manufacturing tissue paper for markets in the Middle East, Africa, and Europe.
