Mepco unit breaks ground on tissue manufacturing facility at KAEC

27/06/2025 04:12 AST

Middle East Paper Company (Mepco), one of the largest paper manufacturers in the region, has announced that its key unit - Juthor Paper Manufacturing Company - has broken ground on TM6 - the second production line for tissue manufacturing at King Abdullah Economic City (KAEC) - near Jeddah.

TM6, which is being set up at a total investment of SAR345 million ($92 million), will significantly expand Juthor's manufacturing output, increasing annual capacity to 120,000 tonnes and operating at a speed of 2,100 m per minute.

Andritz, an Austria-based international technology group, will be assisting Juthor in the project by providing advanced plants, equipment, services, and digital solutions, to the group.

It will also be responsible for the manufacture, supply, and installation of the facility within a two-year period.

TM6 supports Saudi Arabia's Vision 2030 by advancing local manufacturing, reducing reliance on imports, creating skilled jobs, and adhering to world-class environmental standards.

The groundbreaking ceremony was attended by senior representatives from different government and private entities like Modon and Economic Cities and Special Zones Authority along with the Juthor and Mepco senior leadership teams.

Commenting on the launch, Musab Al-Muhaidib, the Chairman of the Board at Mepco Group, said: "The launch of TM6 is a testament to our unwavering belief in Saudi Arabia's industrial future. As we align with Vision 2030, this expansion strengthens our role in enabling local manufacturing and advancing the Kingdom's self-sufficiency in the tissue sector."

The facility will utilise cutting-edge technology and sustainable manufacturing methods to align with Mepco's environmental goals, including efficient resource use and minimizing carbon emissions," he stated.

Mepco Group President Eng. Faisal Haddawi said: "We do not simply build capacity - we build value, resilience, and trust. TM6 will accelerate our strategy for sustainable growth while deepening our contribution to the Saudi economy and regional markets."

Juthor remains committed to continuous investment in manufacturing innovation to meet the growing demand for high-quality tissue paper products in the Kingdom and the wider Mena region, he added.

Trade Arabia