Juthur Paper Manufacturing Co. has taken a significant step towards expanding its operations by signing a contract with Andritz AG on Nov. 10 to manufacture, supply, and install its sixth tissue production line (TM6). This strategic partnership aligns with Juthur's vision to become a leading player in the tissue production industry in the region. The value of this contract represents no more than 25% of Juthur’s total revenue, as per its most recent audited financial statement, ensuring financial sustainability while pursuing growth.

The agreement, which spans 24 months, entails the acquisition of a cutting-edge tissue paper production line. This new production line is designed to achieve an annual production capacity of 60,000 tons, operating at a high speed of 2,100 meters per minute. The inclusion of such advanced machinery will enable Juthur to meet increasing market demands for tissue products while maintaining superior quality. Andritz AG, a global leader in engineering and manufacturing, will oversee the processes of manufacturing, supplying, and installing the TM6 production line, ensuring timely and efficient execution.

The financial impact of this agreement is expected to materialize starting in the fourth quarter of 2026. This timeline allows Juthur to strategically plan for integrating the new production capacity into its operations while minimizing disruptions to existing processes. The TM6 production line is anticipated to play a pivotal role in enhancing Juthur's operational efficiency and competitiveness in the tissue production market.

In August 2024, Juthur Paper Manufacturing Co. had announced its ambitious plan to double its production capacity. This initiative was set into motion through the approval of the TM6 tissue production line project, with an investment of SAR 345 million. This bold move underscores Juthur's commitment to growth and innovation, further strengthening its position in the market.

Juthur’s ongoing investments in advanced technologies and strategic partnerships reflect its dedication to meeting the evolving needs of its customers. By expanding its production capabilities, Juthur aims to cater to both domestic and international markets, contributing to the overall growth of the paper manufacturing sector in the region. This new milestone with Andritz AG reaffirms Juthur's pledge to deliver high-quality tissue products while upholding sustainability and efficiency in its operations.

As the company embarks on this new phase of growth, Juthur Paper Manufacturing Co. remains committed to maintaining its reputation as a reliable and forward-thinking player in the industry. With the TM6 tissue production line, Juthur is poised to set new benchmarks in production efficiency and product quality, ensuring it continues to meet the demands of a dynamic and competitive market.