The Saudi Paper Manufacturing Company announces the signing of a (non-binding) agreement of understanding to purchase the sixth production line with a production capacity of 60,000 tons of sanitary paper rolls with the Italian company TOSCOTEC.
| Element List | Explanation |
|---|---|
| Introduction | The Saudi Paper Manufacturing Company would like to announce that it has concluded an understanding agreement with the Italian company TOSCOTEC, which is one of the largest paper machine manufacturers in the world, to supply a new production line (sixth production line) in the Kingdom of Saudi Arabia, to produce sanitary paper rolls with a production capacity of 60 thousand tons. Annually, bringing the company’s total production capacity to 250 thousand tons annually, with the aim of increasing its market share and supporting national exports to countries in the Middle East, Europe and Africa, in line with the Kingdom’s Vision 2030. |
| Memorandum Signing Date | 2024-03-05 Corresponding to 1445-08-24 |
| Counterparty | TOSCOTEC Company |
| Memorandum Subject | A (non-binding) understanding agreement to purchase a production line for sanitary paper rolls with a design production capacity of 60,000 tons annually. |
| Memorandum Duration | The memorandum will take effect from the date of its signing by both parties and will remain in effect until 01/31/2026 AD unless the two parties agree otherwise in writing. |
| Related Parties | N/A |
| Financial Impact | The financial impact will be determined later. |
| Additional Information | Approximate value: The approximate value of purchasing the sixth production line and the equipment needed to operate it is 300,000,000 Saudi riyals.
Financing method: The project to purchase the sixth production line will be financed through the company’s operating revenues, and through banks and financing parties. Reasons for signing the agreement: 1. Increase the company's production capacity of raw tissue paper rolls from 190,000 tons to 250,000 tons. 2. In line with the national strategy for industry in the Kingdom of Saudi Arabia. 3. Based on the company’s strategy for strategic expansion. 4. Meet the needs of local and global markets.
Expected timetable: It is expected that the technical studies will be approved as soon as the installation, operation and receipt of the fifth production line is completed - God willing.
About the Italian company Toscotec: A non-binding agreement of understanding was signed with the Italian company Toscotec, which provides the latest technologies and customized solutions to major paper producers around the world. Toscotec technology aims to achieve maximum production efficiency, reduce consumption and operational costs, and end products with the highest levels of quality and respect. the environment. The company will announce later any developments in this regard. |
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