04 Apr Zahrat Al Waha for Trading Co. announces its capital expansion plan for the year 2023, at a value of 70 million SR.
Zahrat Al Waha for Trading Co. announces its capital expansion plan for the year 2023, at a value of 70 million SR, funded by the company’s cash, with the aim of diversifying sources of income, reducing costs, increasing profitability and financial solvency, as represented in the following:
– One production line for PET (preform) with its accessories to increase production capacity and diversify the company’s products
– Two production lines for Plastic bottle caps with their accessories to increase production capacity to meet increased market demands.
– Printing and packaging materials sector includes:
- Land
- Buildings and constructions
- Two integrated printing lines with their accessories, with an annual production capacity of 3,180 tons.
- Two production lines for packaging materials for multi-product and multi-use with their accessories, with an annual production capacity of 10,850 tons.
The company aims through the sector of printing and packaging materials to diversify sources of income, maximize profitability, and increase financial solvency.
All production lines of the capital expansion plan have been purchased from major European companies.
Commercial production of the preform production line and two caps production lines are expected to start during the third quarter of this year 2023, while the commercial production of the printing and packaging materials sector is expected to start during the fourth quarter of 2023.
The company relied on financing its capital expansion on self-financing from the company’s cash to reduce financing costs. The aim of these expansions is to increase the company’s market share in the plastic sector in the domestic and foreign markets, diversify and increase sources of income, increase the company’s profitability, increase the company’s financial solvency, and maximize shareholder rights.