Saudi Arabia’s Middle East Paper Company (MEPCO) has signed a contract worth 123 million riyals ($32.8 million) as part of its proposed tissue production facility.
The engineering and supply agreement was signed with Toscotec, an Italian firm specialising in the setting up of plants and supply of equipment for tissue paper production, the company said in a statement to the Saudi Stock Exchange (Tadawul).
As part of the agreement, the company is required to make an advance payment within 21 working days from the date of signing the contract.
Last December, MEPCO’s board approved the proposal to build a tissue jumbo roll factory in the Industrial Valley in King Abdullah Economic City.
The manufacturing facility will have an installed capacity of 60,000 tonnes per year and is estimated to cost around 338 million riyals.
The project will be funded through loans from banks and Saudi Arabia’s Industrial Development Fund, the company said earlier.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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