RIYADH: Zahrat Al Waha for Trading Co. has given the SAR 14 million to develop a new production line for the production of preform with different weights.
[the_ad id=”32940″]The line will increase production capacity by 11.58% annually, which will contribute to sales growth to meet the needs of the domestic market and export, which will be reflected in improving the performance of the company, a notice sent to Saudi Stock Exchange (TADAWUL) said.
Husky Injection Molding Systems Ltd is undertaking the project, which is expected to start commercial operations by the 4th quarter of 2019.
Zahrat Al Waha for Trading specializes in the manufacturing of plastic preforms and caps, and has two factories (the Preforms Factory and the Caps Factory), as well as 21 high-profile European production lines that currently produce approximately 12 billion pieces of preforms and caps, and a centralized warehouse that is fully automated.
The total estimated cost of the production line, including the value of the purchase of the line, it’s accessories and installation costs, is SAR 14 million.
The production line will be financed mainly by medium-term bank loans and partly by the company’s self-financing.
The new production line will increase the company’s market share in the plastics sector.