The Public Investment Fund announced the completion of its investment in the Middle East Paper Manufacturing and Production Company (MEPCO), bringing its ownership percentage to 23.08%, by subscribing to new shares issued by the company to increase its capital.
The Fund explained, in a statement today, Thursday, that it aims, through its investment, to enable MEPCO to raise operational efficiency and productivity and support environmental sustainability, through recyclable products, including paper products, in line with the goals of the Kingdom and the Fund in the field of sustainability.
He pointed out that his investment contributes to achieving MEPCO's expansion strategy, especially in the areas of packaging and specialized building products industries - such as gypsum boards, which will strengthen local supply chains for various current and future projects.
He also pointed out that the completion of the investment deal came after the issuance of the required regulatory approvals from the relevant authorities and the extraordinary general assembly of MEPCO.
The fund has a diversified investment portfolio in real estate development, building and construction projects with the aim of supporting sustainable economic development in the Kingdom, attracting local and international investors, contributing to increasing operational capacity and adopting the most prominent technologies.
The Public Investment Fund worked to empower 13 vital priority sectors in its investment strategy, in partnership with the private sector, in a way that contributes to achieving the goals of the Kingdom’s Vision 2030 by diversifying the economy, including the retail, construction, and real estate development sectors.
Mohammed Al-Dawoud, Director of the Industries and Mining Sector in the General Administration of Middle East and North Africa Investments at the Public Investment Fund, said: The Fund’s investment in MEPCO reflects the attractiveness of growth opportunities in promising sectors, such as recycling, retail, building materials, and others.
He added: The fund's investment enables the company to expand its sustainable production activities, focusing on high-value products and enhancing its export activities.
For his part, MEPCO’s CEO, Sami Al-Safran, said: The fund’s investment will contribute to enabling MEPCO to implement its expansion strategy, benefit from the great growth potential in the local and regional markets, and provide more opportunities as MEPCO seeks to consolidate its business in the sector.
MEPCO works for sustainable growth within its strategy that achieves integration between the activities of paper production and waste management. The company also enhances its investment in the sector through ambitious projects that support the Kingdom’s goals of sustainability and the transition to a circular economy through recycling, reducing waste, and converting waste into energy sources to meet the needs of our activities. .
The Saudi market provides promising opportunities for investment in paper products and industries, such as tissue paper, thanks to its rapid growth and localization of production.
The Fund's investment in MEPCO is consistent with its strategic objectives in supporting the private sector in the Kingdom, to enhance local content, increase exportable products and improve their quality and competitiveness.
