Juthor Breaks Ground on TM6 Facility to Boost Manufacturing Capacity
Deal News | Jun 26, 2025 | Zawya
Juthor Paper Manufacturing Co., a subsidiary of Middle East Paper Co. (MEPCO), has initiated the construction of a new tissue manufacturing facility, TM6, at King Abdullah Economic City (KAEC) in Saudi Arabia. With a significant investment of SAR 345 million, TM6 is set to expand Juthor's manufacturing capacity by 120,000 tons annually while operating at a remarkable speed of 2,100 meters per minute. The project, which aligns with Saudi Arabia’s Vision 2030 by promoting local manufacturing and reducing import dependency, is being executed in collaboration with Andritz AG, an Austria-based technology group. This development not only promises enhanced industrial capacity but also signifies a commitment to sustainable manufacturing processes. Furthermore, MEPCO's leadership emphasized the strategic importance of the facility in promoting Saudi Arabia's self-sufficiency in the tissue sector and in contributing to the regional economy.
Sectors
- Manufacturing
- Pulp and Paper
- Sustainable Development
Geography
- Saudi Arabia – The facility is located in King Abdullah Economic City (KAEC), Saudi Arabia, a central location for industrial activity in the region.
- Middle East and North Africa (MENA) – Juthor and MEPCO serve the broader MENA region in terms of the manufacturing and distribution of paper products.
- Austria – Andritz AG, the company responsible for manufacturing and installing the facility, is based in Austria.
Industry
- Manufacturing – The article focuses on the development of a new tissue manufacturing facility by Juthor, signifying an increase in production capacity and industrial output.
- Pulp and Paper – The article discusses the expansion of tissue paper manufacturing, which falls under the pulp and paper industry.
- Sustainable Development – The facility is designed with cutting-edge technology and sustainable methods, aiming to minimize carbon emissions as part of its alignment with Vision 2030.
Financials
- SAR 345 million – The total investment for the TM6 project aimed at expanding manufacturing capacity.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Juthor Paper Manufacturing Co. | Target Company | Company | A Saudi-based tissue paper manufacturer and subsidiary of MEPCO Group, focused on eco-friendly solutions. |
| Middle East Paper Co. (MEPCO) | Parent Company | Company | One of the largest paper manufacturers in the MENA region, it has a strategic role in this expansion project. |
| Andritz AG | Supplier and Installer | Company | An Austrian international technology group responsible for providing advanced solutions and equipment for TM6. |
| MODON | Government Agency | Government | A Saudi government entity engaged in the development of industrial cities and technology zones. |
| Economic Cities and Special Zones Authority | Government Agency | Government | Saudi governmental authority overseeing economic cities and special zones to enhance economic diversification. |
| Mr. Musab Al-Muhaidib | Chairman of the Board | People | Chairman of the Board at MEPCO Group, advocating for the expansion's strategic contribution to Vision 2030. |
| Eng. Faisal Haddawi | Group President | People | Group President at MEPCO, emphasizing the creation of value through industrial expansion. |