In a move to optimise its asset portfolio and accelerate its long-term corporate turnaround, Riyadh-based Saudi Printing & Packaging Co. (SPPC) has officially finalised the sale of its polypropylene cup and plastic container production lines located in the UAE.
The production lines—previously operated by Commercial United Packaging Company (CUPCO), a wholly owned subsidiary of SPPC held through the Emirates National Factory for Plastic Industries—have been acquired by the UAE-based firm Al Aamal Al Dhahabiya General Trading Company (also operating as Golden Business General Trading Co.).
Financial Impact and Deal Structure
According to the company’s official regulatory bourse filings on Saudi Exchange (Tadawul), the assets were sold for a total transaction value of AED 1.10 million (approx. SAR 1.12 million). As of late September 2026, the net book value of the production lines stood at SAR 6.10 million. Due to this valuation gap, the divestment will result in an estimated non-cash loss of roughly SAR 5 million that will be recognised in the financial statements covering the period of completion. Moving forward, SPPC will inject the direct cash proceeds from the sale straight into funding its ongoing operational activities.
Executing the Strategic Pillars
This transaction directly implements the second and fifth pillars of SPPC’s comprehensive 5-pillar corporate strategy originally announced on 18 August 2025. The strategy focuses on evaluating immediate exit options for non-strategic holdings to streamline operational capacity.
By offloading these capital-intensive plastic molding lines, SPPC reduces its systemic exposure to regional regulatory shifts and extended producer responsibilities targeting single-use plastics. Furthermore, eliminating the capital expenditure required to keep low-margin operations afloat directly aligns with the company’s debt restructuring and liquidity optimisation roadmap.
Growth & Capital Realignment
By exiting underperforming manufacturing facilities, SPPC is actively reallocating its capital according to its turnaround plan. The transaction results in an immediate book loss, but it eliminates a major operational burden. As regional demand pivots towards sustainable and advanced flexible packaging alternatives, SPPC is now strategically positioned to target these higher-margin, high-growth core packaging segments.
