Riyadh, January 04, 2024, The Public Investment Fund (PIF) has successfully concluded an investment agreement with the Middle East Paper Company (MEPCO), a leading manufacturer specializing in the production and recycling of paper-based products across the Middle East and North Africa region.
As per a press release from the PIF, the investment involves the acquisition of a 23.08% stake in MEPCO through a capital increase and subscription to new shares. PIF's strategic investment aims to facilitate the expansion of MEPCO's production capacity, enhance operational efficiency, and foster environmental sustainability by promoting the production of recyclable paper goods. This aligns with the broader sustainability objectives of both Saudi Arabia and PIF.
The investment is poised to support MEPCO's growth strategy, particularly in the areas of packaging and specialized building materials like gypsum boards, commonly referred to as "drywall." This move is expected to reinforce the local supply chain, catering to existing and future projects.
The press release highlighted PIF's commitment to a diversified portfolio of investments in the construction services sector, with a focus on promoting sustainable growth in the Saudi economy. The collaboration with private businesses, including MEPCO, aligns with PIF's broader investment strategy and contributes to the objectives outlined in Saudi Vision 2030, promoting economic diversification.
Muhammad Aldawood, Head of Industrials and Mining Sector in MENA Investments at PIF, emphasized that the investment in MEPCO reflects the promising growth opportunities in sectors like recycling, retail, and building materials. The investment is expected to enable MEPCO to expand its sustainable production activities, focusing on high-value-added products and enhancing its export capabilities.
MEPCO's CEO, Eng. Sami Al Safran, underscored the significance of PIF's investment in implementing the company's expansion strategy, capturing growth potential both locally and regionally. He highlighted MEPCO's commitment to sustainable growth and its unique strategy, which integrates paper products and waste management to support Saudi Arabia's goals of sustainability and transitioning to a circular economy.
The investment by PIF not only supports MEPCO's ambitions but also contributes to the broader economic landscape by presenting investment prospects in paper products and related industries. This aligns with the Saudi market's rapid growth and localization efforts, promoting private sector development, local content, high-value exports, and enhanced competitiveness.
