SAUDI ARABIA —Saudi Arabia's industrial paper sector is set for a substantial capacity expansion as Middle East Paper Company (MEPCO) advances its strategic growth plans in King Abdullah Economic City. Operating through its specialized manufacturing subsidiary Juthoor, the company is constructing its sixth tissue paper production line, designated TM6. The project, initiated in late 2024, will elevate total annual output of tissue and hygienic paper jumbo rolls from 60,000 tons to 120,000 tons upon completion.
Trial testing and full commercial operations for the new production infrastructure are scheduled to begin concurrently in the first quarter of 2027. Despite persistent geopolitical pressures affecting global maritime logistics and raw material shipping lanes, operational timelines remain intact. Middle East Paper Company (MEPCO) is a prominent Middle Eastern paper and board manufacturer listed on the Saudi Exchange, producing packaging products, containerboard, and hygienic paper rolls for industrial and commercial applications across international markets.
This industrial expansion addresses accelerating regional consumption of hygienic paper products, consumer goods, and commercial packaging across domestic and export markets. By doubling local output, the development reduces dependence on paper pulp and finished roll imports, optimizing regional supply chains for consumer packaged goods manufacturers. The increased volume supports Saudi Arabia's Vision 2030 industrial policy, which aims to strengthen domestic manufacturing capabilities and diversify national non-oil output.
For institutional investors and industrial stakeholders, doubling production capacity creates scale efficiencies and enhances revenue stream diversification across higher-margin paper categories. Expanding manufacturing footprint within King Abdullah Economic City provides strategic logistics access to Red Sea trade corridors, positioning regional paper producers to capture growing market share across Middle Eastern and North African commercial sectors.
