MEPCO delays Saudi tissue line and containerboard machine startups
Saudi Arabia's Middle East Paper Co. (MEPCO) has pushed back the startup of its sixth tissue line (TM6) at subsidiary Juthor Paper in King Abdullah Economic City to Q1 2027 from Q3 2026, citing supply-chain disruption linked to regional geopolitical conditions. The company also delayed its PM5 recycled containerboard machine at its Jeddah mill to Q1 2028 from Q4 2027 and raised its estimated cost to SAR 1.881 billion from SAR 1.78 billion, while the TM6 budget of SAR 345 million is unchanged.
Why this mattersThe slippage delays new containerboard and tissue capacity reaching the Middle East market and postpones the projects' contribution to MEPCO's earnings.
- TM6 trial production delayed to Q1 2027 from Q3 2026, commercial output also targeted Q1 2027
- TM6 will add 60,000 tonnes/year of tissue capacity, doubling Juthor's output to 120,000 tonnes
- TM6 investment unchanged at SAR 345 million
- ANDRITZ supplies the TM6 Prime Line W 2200, designed for 2,100 m/min at 5.47 m width
- PM5 recycled containerboard machine at Jeddah delayed to Q1 2028 from Q4 2027
- PM5 estimated cost raised to SAR 1.881 billion from SAR 1.78 billion, machine capacity 450,000 tonnes/year