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.
The Public Investment Fund (PIF) has announced the completion of a deal to invest in the Middle East Paper Company (MEPCO), a leading manufacturer specialised in producing and recycling paper-based products in the Middle East and North Africa, according to its press statement. PIF has acquired a 23.08 per cent stake in MEPCO by way of a capital increase and subscription to new shares, it said.
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.
According to the statement, 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 is empowering 13 priority sectors locally, in partnership with private businesses, contributing to achieving the goals of Vision 2030 by diversifying the economy. These include the retail, construction and real estate sectors, within the framework of PIF’s investment strategy, it added.
Muhammad Aldawood, Head of Industrials and Mining Sector in MENA Investments at PIF, said: “PIF’s investment in MEPCO reflects the attractive opportunities for growth in promising sectors such as recycling, retail and building materials. This investment enables MEPCO to expand its sustainable production activities while focusing on high value-added products and growing its export activities.”
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. This will help create new opportunities, as MEPCO continues its journey to become a national champion in our industry. Our company strives for sustainable growth and a better future, thanks to its unique strategy which integrates paper products and waste management. MEPCO is investing in the sector through ambitious projects to support Saudi Arabia’s goals of sustainability and transition to a circular economy by recycling, reducing waste and converting waste into energy sources to meet our business needs.”
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 localisation of production. Additionally, PIF’s investment in MEPCO supports the private sector in Saudi Arabia, boosts local content, increases high-value ready-for-market exports, and improves quality and competitiveness.