MEPCO Subsidiary, Juthor , Signs Contract to Set Up Sixth Tissue Production Line

Middle East Paper Co. (MEPCO)’s subsidiary, Juthur Paper Manufacturing Co., signed a contract on Nov. 10 with Andritz AG to manufacture, supply, and install a sixth tissue production line (TM6).The contract value represents no more than 25% of MEPCO’s total revenue as per the last audited annual financial statement.

The 24-month agreement includes the purchase of a complete tissue paper production line with an annual production capacity of 60,000 tons and a speed of 2,100 meters per minute. Andritz AG will oversee the manufacturing, supply, and installation processes.
The financial impact of the contract is expected to materialize starting Q4 2026.
In August, MEPCO’s board approved a project to double the production capacity of Juthur Paper Manufacturing Co. by introducing the TM6 tissue production line. The project is valued at SAR 345 million.

For the fiscal year 2023, MEPCO reported total revenues of SAR 866.75 million. Based on this, the 25% threshold amounts to approximately SAR 216.7 million.