Riyadh — Mubasher: Middle East Paper Company (MEPCO) announced a delay in the production schedule for its sixth tissue paper production line (TM6), a project backed by the Saudi Public Investment Fund (PIF).
The rescheduling decision is attributed to geopolitical impacts on global supply chains, according to a bourse filing.
The project is managed through MEPCO subsidiary Juthor and is now expected to commence both trial and commercial production during the first quarter (Q1) of 2027.
The revised timeline shifts the project from its previous target of trial production in Q3-26 and commercial operations in Q4-26.
Initially announced on 18 August 2024, the expansion project is located in King Abdullah Economic City.
The TM6 production line aims to double the annual production capacity of tissue paper and jumbo rolls from 60,000 tons to 120,000 tons.
Meanwhile, execution of the expansion plans began in the second half (H2) of 2024. While the delay will postpone the positive financial impact of the project, MEPCO stated that project costs remain unchanged from previous estimates.
The expansion aligns with national industrial localization goals under Saudi Vision 2030.
It is worth noting that MEPCO also rescheduled the timeline for its fifth production line (PM5) project in addition to raising the total expected cost to SAR 1.88 billion.
