Faisal Haddawi, CEO ofMiddle East Paper Co. (MEPCO)
Middle East Paper Co.’s (MEPCO) earnings in the second quarter of 2025 were driven by an improved sales mix, higher average prices, increased demand, and a focus on globally valued products, in addition to expanding sales channels in the local market, CEO Faisal Haddawi said. 
In an interview with Al Arabiya, he added that profits mainly came from operational activities, despite recording other operating income of SAR 5.4 million, which included government support under the Competitiveness Program by the Ministry of Industry to stimulate increased production capacity.
He confirmed that the effect of this support on profit was limited, and that the positive results reflect a genuine improvement in operational efficiency and cost control.
The CEO further indicated that the company recorded growth despite a 13% increase in costs, thanks to reductions in administrative expenses, minimizing waste, and greater reliance on local suppliers to strengthen supply chains.
Regarding future projects, Haddawi emphasized that the Public Investment Fund’s (PIF) entry as a strategic shareholder plays a major role in achieving several strategies, including the growth strategy, through which the company launched two major projects.
He further explained that the first project is PIM-5, which aims to double paper production capacity from 450,000 tons to 900,000 tons annually by the end of 2027, with an investment of SAR 1.78 billion.
The second of which aims at tissue production expansion at Juthor Plant to increase the production capacity from 60,000 tons to 120,000 tons annually, expected to be operational by the end of 2026, with an investment of SAR 365 million, the exec. said.
Moreover, Haddawi noted that these projects contributed to a more than 450% increase in work-in-progress, adding that MEPCO is preparing for an institutional transformation to strengthen its position in the circular economy and increase local content to achieve sustainable growth in line with Saudi Vision 2030.
According to Argaam data, MEPCO reported profits of SAR 10.5 million by the end of the first half of 2025, against losses of SAR 14.3 million in the same period of 2024. Second-quarter profits reached SAR 5.2 million, representing a 29% increase year-on-year (YoY).
Faisal Haddawi, CEO ofMiddle East Paper Co. (MEPCO)
Middle East Paper Co.’s (MEPCO) earnings in the second quarter of 2025 were driven by an improved sales mix, higher average prices, increased demand, and a focus on globally valued products, in addition to expanding sales channels in the local market, CEO Faisal Haddawi said.
In an interview with Al Arabiya, he added that profits mainly came from operational activities, despite recording other operating income of SAR 5.4 million, which included government support under the Competitiveness Program by the Ministry of Industry to stimulate increased production capacity.
He confirmed that the effect of this support on profit was limited, and that the positive results reflect a genuine improvement in operational efficiency and cost control.
The CEO further indicated that the company recorded growth despite a 13% increase in costs, thanks to reductions in administrative expenses, minimizing waste, and greater reliance on local suppliers to strengthen supply chains.
Regarding future projects, Haddawi emphasized that the Public Investment Fund’s (PIF) entry as a strategic shareholder plays a major role in achieving several strategies, including the growth strategy, through which the company launched two major projects.
He further explained that the first project is PIM-5, which aims to double paper production capacity from 450,000 tons to 900,000 tons annually by the end of 2027, with an investment of SAR 1.78 billion.
The second of which aims at tissue production expansion at Juthor Plant to increase the production capacity from 60,000 tons to 120,000 tons annually, expected to be operational by the end of 2026, with an investment of SAR 365 million, the exec. said.
Moreover, Haddawi noted that these projects contributed to a more than 450% increase in work-in-progress, adding that MEPCO is preparing for an institutional transformation to strengthen its position in the circular economy and increase local content to achieve sustainable growth in line with Saudi Vision 2030.
According to Argaam data, MEPCO reported profits of SAR 10.5 million by the end of the first half of 2025, against losses of SAR 14.3 million in the same period of 2024. Second-quarter profits reached SAR 5.2 million, representing a 29% increase year-on-year (YoY).
