Jan. 5, 2024 - The Public Investment Fund (PIF) has announced the completion of a deal to invest in the Middle East Paper Company (MEPCO), a leading manufacturer specialized in producing and recycling paper-based products in the Middle East and North Africa. PIF has acquired a 23.08% stake in MEPCO by way of a capital increase and subscription to new shares.
Through its investment, PIF will enable MEPCO to expand its production, raise its operational efficiency, and support environmental sustainability, through recyclable products — including paper goods — in line with the sustainability goals of both Saudi Arabia and PIF.
The investment will further contribute to achieving MEPCO's expansion strategy, especially for packaging and specialized building materials like gypsum boards, also known as "drywall," strengthening the local supply chain for current and future projects. PIF has a diversified portfolio of investments in the construction services sector to support the sustainable growth of the Saudi economy, attract local and foreign investments, expand operational capacity and transfer technology.
"PIF's investment in MEPCO reflects the attractive opportunities for growth in promising sectors such as recycling, retail and building materials," said Muhammad Aldawood, Head of Industrials and Mining Sector in MENA Investments at PIF. "This investment enables MEPCO to expand its sustainable production activities while focusing on high value-added products and growing its export activities."
According to PIF, the Saudi market provides promising opportunities for investment in paper products and related industries such as tissues due to its rapid growth and the drive for localization of production.
Eng. Sami Al Safran, CEO of MEPCO, commented: "PIF's investment further enables the implementation of our expansion strategy and captures significant growth potential, both locally and regionally. Our company strives for sustainable growth and a better future, thanks to its unique strategy which integrates paper products and waste management."
The transaction was completed after securing approvals from relevant authorities as well as MEPCO's shareholders, who approved it at an extraordinary general meeting.
The Public Investment Fund (PIF) has an investment portfolio with a focus on sustainable investments, both domestically and internationally.
SOURCE: Public Investment Fund (PIF)
Paper Industry Newsletter
Stay on top of paper industry news
from around the world with
PaperAge's free weekly newsletter.
Delivered every Thursday.
Sign up today!