Shares of Saudi Paper increase as it inks USD44M agreement with Toscotec of Italy

2022-10-02 07:27:25

(MENAFN) Following the signing of a contract with the Italian company Toscotec for the construction and delivery of a tissue paper production line for a total price of SR166 million (USD44 million), Saudi Paper Manufacturing Co. saw a little increase during the early hours of trade on Sunday. At 11:33 a.m. Saudi time, Saudi Paper's stock price rose 1.89 percent to SR53.80.

The agreement, which both businesses signed in June, calls for the purchase of Dammam's second industrial city's fifth manufacturing line, which is going to be used to make tissue rolls with an annual capacity of 60,000 tons for SR300 million.

Saudi Paper is going to make an advance payment on the terms of the SR166 agreement within two months at the most, and the remaining sum is going to be paid in instalments in accordance with the delivery, installation, receipt, and final operation.

The supplier would provide a performance guarantee to the business as part of the agreement for a period of 16 months following the contract's signature.

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