The Public Investment Fund (PIF) announced on Thursday that it has finalized an investment agreement with the Middle East Paper Company (MEPCO), a manufacturer specializing in the production and recycling of paper-based products in the Middle East and North Africa region.
PIF said in a statement that it has acquired a 23.08% stake in MEPCO through a capital increase and subscription to new shares.
Through its investment, PIF aims to expand MEPCO production, enhance its operational efficiency, and support environmental sustainability, through recyclable products, including paper goods. This aligns with the sustainability objectives of both Saudi Arabia and PIF.
According to the statement, the investment will support MEPCO's expansion strategy, particularly in the areas of packaging and specialized building materials such as gypsum boards, commonly known as "drywall." This will reinforce the local supply chain, catering to existing and future projects.
"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," it said.
It added that PIF is collaborating with private businesses to empower 13 priority sectors, including retail, construction and real estate, within the framework of PIF’s investment strategy. This contributes to achieving the goals of Saudi Vision 2030 and diversifying the economy.
"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,” said Head of Industrials and Mining Sector in MENA Investments at PIF Muhammad Aldawood.
CEO of MEPCO Eng. Sami Al Safran emphasized that PIF's investment enables the implementation of its expansion strategy and captures significant growth potential, both locally and regionally, which helps creating new opportunities, "as MEPCO continues its journey to become a national champion in our industry.”
He added: "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 rapid growth and localization efforts in the Saudi market present investment prospects in paper products and related industries like tissues.
Additionally, PIF's investment in MEPCO supports the private sector in Saudi Arabia, enhances local content, increases high-value ready-for-market exports and improves quality and competitiveness.
