The Clap
MEPCO (1202) is set to establish a cardboard factory for an estimated cost of SAR 1.5 billion.
The Deets
According to MEPCO, the production capacity of the project will reach 400,000 tons per year, which is double the company’s current production capacity.
Production is expected to start within 33 months.
Projects
MEPCO expects that the internal rate of return from the project will reach 15%, as this will double its sales and enhance its competitiveness.
The new machine used will be the latest, fastest and largest cardboard production machine in the Middle East.
It will specialize in the production of light cardboard, making MEPCO the largest company in the region that produces this type of paper.
Why this Matters
MEPCO’s stock jumped 3.91% in Thursday’s trading session following the news.
The company is looking to expand in the local and global markets.
What Now
The project will rely on raw materials from recycled paper, which preserves the environment and promotes sustainability.
