Jeddah-based Middle East Paper Company (Mepco) will invest $474.56m to expand its containerboard paper plant. The feasibility study on the fifth paper line (PM5) has been completed, the company said in a filing with the Saudi Stock Exchange (Tadawul). The final budget includes the land value and an internal rate of return estimated at 14.5%. Construction on PM5, which will have a production capacity of 450,000 tonnes, will start in the third quarter. The project is expected to be completed in the fourth quarter of 2027, with commercial production starting in the same quarter. The new phase will be funded by Mepco’s own capital, long-term loans from local banks and use of funds resulting from the issuance of shares to Saudi Arabia’s sovereign wealth institution, the Public Investment Fund (PIF). Mepco has signed an engineering and supply contract with J M Voith SE & Company. Separately, KG will manufacture, supply and supervise the installation of the main machine for the PM5 project.     For more information: https://mepco.biz/Website/En/ (ICE RIYADH)

Fonte notizia: Meed