Client signed an agreement worth SAR 123 million with TOSCOTEC to purchase tissue paper jumbo rolls production line. An advance payment will be made within 21 working days from the date of signing the contract in exchange of a bank guarantee from the supplier, and the rest in instalments that correspond to the delivery, installation, operation and final receipt with the company obtaining a performance guarantee according to the terms of the contract. TOSCOTEC is an Italian company, specializing in designing and manufacturing turnkey projects and complete machines, and reconstruction of individual factories and equipment for the manufacture of tissue, paper and cardboard. It provides the latest technology and customized solutions to major paper producers around the world. The technology aims to achieve maximum production efficiency, reduce consumption, operating costs and end products of the highest quality, and respect for the environment. MEPCO’s tissue machine will have a production capacity of over 60,000 tons per annum of tissue jumbo rolls, covering a wide range of basis weights. The AHEAD 2.2L machine features a TT NextPress shoe press with an upgraded design, a third-generation TT SYD Steel Yankee Dryer, and top efficiency TT Hood-Multigen with cogeneration integrated air system. Toscotec will supply the new line on a turnkey basis, including two OPTIMA 2600L slitter rewinders designed to ensure superior bulk and softness preservation. The machine is characterized by a developed design to ensure correct production volumes while achieving the highest rates of operating efficiency and energy savings. The manufacture of the machinery will take place in Lucca, Italy starting from the first quarter of 2021, and is expected to complete within 12 months. The test-run of the new line is scheduled in the first quarter of 2023, followed by commercial production.

Client's wholly owned subsidiary, Jothoor Paper Manufacturing Co., signed a loan contract with the Saudi Industrial Development Fund (SIDF) for a total value of SAR 150 million. The duration of finance is until 15/4/1452 Hijri. The loan will be used to finance the establishment of factory to produce tissue and hygienic paper. The facility is secured by a promissory note, equivalent to facility value, in favor of SIDF.

Construction work is in full swing on this project.