The Public Investment Fund (PIF) has completed an investment deal with the Middle East Paper Company (MEPCO), a leading manufacturer focused on paper product production and recycling in the Middle East and North Africa.
In an announcement relayed through a press release, PIF confirmed the acquisition of a 23.08% stake in MEPCO through a capital increase and subscription to new shares. The investment aims to fuel MEPCO’s production expansion, streamline operational efficiency, and bolster environmental sustainability through the production of recyclable paper goods. This aligns with the sustainability objectives of both Saudi Arabia and PIF.
The investment will specifically support MEPCO’s strategic expansion plan, particularly within packaging and specialized building materials like gypsum boards, commonly referred to as “drywall.” This strategic move is anticipated to fortify the local supply chain, catering to current and future projects in the region.
Highlighting PIF’s diversified portfolio of investments in the construction services sector, the release emphasised the entity’s commitment to driving sustainable growth in the Saudi economy. It aims to attract local and foreign investments, expand operational capacity, and facilitate technology transfer.
Collaboration with private businesses to reinforce 13 priority sectors, including retail, construction, and real estate, is also part of PIF’s investment strategy. This initiative aligns with the objectives of Saudi Vision 2030 and aims to diversify the country’s economy.
Head of Industrials and Mining Sector in MENA Investments at PIF Muhammad Aldawood said, “This investment enables MEPCO to expand its sustainable production activities while focusing on high value-added products and growing its export activities.”
MEPCO’s CEO, Eng. Sami Al Safran, highlighted the significance of PIF’s investment in driving the company’s expansion strategy and tapping into substantial growth prospects within local and regional markets.
