Saudi-listed Middle East Paper Co (MEPCO) will invest SAR 1.5 billion ($400 million) in a containerboard or paper packaging plant in the kingdom.

The location of the plant, which has an expected schedule of nearly three years (33 months) from the start of the project to production commencing, was not disclosed in the company’s statement to the Saudi Stock Exchange (Tadawul) today.

When complete, it have a capacity of 400,000 tonnes annually and will serve both local and global markets, the company said, with an expected internal rate of return of 15%.

The board has approved preparatory procedures including feasibility studies, speaking to financial institutions and obtaining approvals, the statement added.

(Writing by Imogen Lillywhite; editing by Seban Scaria)