A paper factory, jointly owned by Saudi cement maker Yanbu Cement Company (YCC) and Kuwaiti paper bag manufacturer Shuaiba Paper Products Co, will produce some 70 million cement bags annually, according to YCC managing director, Saud Salih Islam.
The factory, which will be set up in Saudi Arabia, will be 60 per cent owned by YCC, while the remaining 40 per cent will be held by Shuaiba Paper Products. The two firms have set up a company under the name Yanbu Paper Products Co to own and manage the project.
The plant will be built in Yanbu, western Saudi Arabia, on a land plot of 30,000 sq m. The factory will have three production lines, and will also comprise warehouses and administrative buildings. Infrastructure works on the project will be carried out by a local company, while the production lines will be supplied and installed by a German contractor.
The factory, which is to start production in the second quarter of 2005, will meet 70 per cent of YCC’s needs of cement bags. Shuaiba Paper Products was established in 1978 and was listed on the Kuwait Stock Exchange (KSE) in 1996. It makes bags for cement, gypsum, lime, mortar, chemicals, food, tea, cocoa and animal feed.