Riyadh –   Saudi Paper Manufacturing Company signed an agreement worth SAR 9.2 million with Taiwan’s Ocean Associate Company to purchase new machines that will increase the production capacity of tissue paper by 3,600 tonnes per year.

The listed firm plans to increase the output to 45,600 tonnes per year from 42,000 tonnes. Production meanwhile is expected to take place during the fourth quarter (Q4) of 2022.

The new equipment aims to improve the quality of the finished product through full application of automation, according to a bourse filing on Wednesday. The agreement will also help to reduce the cost of consuming raw materials by 4.8%.

Saudi Paper will fund the deal from its working capital.

The impact of the deal on the financial statements will be witnessed as of the second quarter (Q2) of 2021.

A day earlier, the listed company signed an agreement worth SAR 58 million with the Italian company Toscotec to boost production.

Source: Mubasher

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