Saudi Paper’s Kuwait plant to start operations next month

Logo of Saudi Paper Manufacturing Co.

Saudi Paper Manufacturing Co. (SPM) announced the latest updates related to the capital increase through a rights issue with the aim of developing the company and improving its performance.

In a bourse filing today, Oct. 4, SPM said that it completed the installation of all the machines and the trial operations at Al-Juthoor Paper Tissue Manufacturing Plant in Kuwait.

The final phase is expected to complete within the next month, as work is underway to connect the electricity, it added.

The paper manufacturer launched SAR 100 million rights issue through offering 10 million shares, at SAR 10 per share, to increase capital from SAR 92 million to SAR 192 million, Argaam earlier reported.

It said that will use the proceeds to purchase raw materials, consisting of tree pulp, to feed the company's production lines, rebuild assets to improve production quality, purchase machines to increase the amount of production, and repay part of the bank loans.