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Zahrat Al Waha starts installing 2 plastic preforms production lines

Zahrat Al Waha starts installing 2 plastic preforms production lines
Commercial production of the new lines may commence during Q3-20
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Riyadh – Mubasher: Zahrat Al Waha Trading Company has received and began installation works for two plastic preforms production lines purchased from Husky Injection Molding Systems.

The new lines will increase Zahrat Al Waha’s production capacity by 14% annually, contributing to higher sales to meet domestic and overseas orders, according to a stock exchange filing on Sunday.

Moreover, they will increase the company’s market share in the plastics sector both locally and overseas while improving its profitability.

According to the disclosure, the purchase transaction was financed as follows; 30% from the company’s cash resources, 34% from medium-term sharia-compliant credit facilities, and 36% from short-term sharia-compliant loans.

The said credit facilities will be due at the beginning of the third quarter (Q3) of 2020.

Moreover, trial operation and commercial production of the new lines are likely to commence during Q3-20, the statement concluded.