Saudi Paper Manufacturing Co. has signed an agreement with Italy’s Toscotec to supply a raw tissue paper rolls production line for its Dammam 2nd Industrial City factory.
The fifth line is being procured at a total cost of 166 million Saudi riyals ($44.17 million), the company said in a stock exchange statement.
The project will increase the company’s production capacity of tissue paper rolls by 60,000 tonnes per annum (TPA) to 190,000 TPA to meet local and export market requirements, the company said.
The deal will be financed from Saudi Paper’s operating revenue, sale of certain non-operating assets, proceeds of legal claims, as well as banks and local financing institutions, it said adding that production is likely to start during the third quarter of 2024
(Writing by D Madhura; Editing by Anoop Menon)