MEPCO lays the Foundation for PM5: A Groundbreaking Leap in Paper Production, doubling Supply Capacity and introducing Superior-Quality Paper to the Region

03/03/2025 05:55 AST

The Middle East Paper Manufacturing and Production Company ("MEPCO"), the leading company in the region's paper industry, announced the laying of the foundation for its 5th paper production line (PM5), the largest of its kind in the Middle East, as part of its strategic plan to strengthen Saudi Arabia's role in the global paper market.

The new production line (PM5) will double MEPCO's total production capacity from 425,000 tons to 875,000 tons annually, strengthening its market position and establishing its dominance in the region. PM5 will enable MEPCO to produce high-quality, low-basis weight paper with energy-efficient technology that reduces operational costs compared to other machines.

By closing the gap on the Kingdom's 30% reliance on imported containerboard, PM5 will empower Saudi Arabia to meet its own demand and become a net-positive exporter of paper products.

The impact goes beyond numbers:

-PM5 is set to double MEPCO's revenue and reinforce its leadership in the regional market. It will create new job opportunities, stimulate economic growth, and support local businesses by prioritizing local sourcing and strengthening the domestic supply chain, ensuring that the impact of this project extends beyond MEPCO's factory walls.

It will divert an additional 500,000 tons of paper waste from landfills every year, raising MEPCO Group's total to 1 million tons of repurposed paper waste annually, a major milestone in advancing the company's circular economy efforts.

Eng. Faisal Alawi Haddawi, Group President of MEPCO, Commented: "PM5 is about the impact it brings to the whole value chain. Doubling our production capacity will significantly boost MEPCO's revenue and create new job opportunities across the value chain. With PM5, we are introducing low-basis weight paper, a first of its kind in the region, offering superior quality and a competitive alternative to imports. Our focus remains on sustainable growth, combining innovation and operational excellence to drive both economic and environmental progress."

Musab Sulaiman Al-Muhaidib, Chairman of the Board of Directors of MEPCO, Added:

" PM5 marks a transformative leap for MEPCO and Saudi Arabia's paper industry. This investment expands our capacity, strengthens the national supply chain, and drives the Kingdom's shift from importer to net-positive exporter, reinforcing Saudi Arabia's global competitiveness. It's a bold step that aligns with Vision 2030, accelerating economic diversification and advancing sustainability."

Saudi Gazette