RIYADH: Saudi Arabia’s sovereign wealth fund has raised its stake in Middle East Paper Co. to 23.08 percent through a capital increase and the subscription of new shares. In a press statement, the Public Investment Fund stated that the deal will empower MEPCO to expand its production, enhance operational efficiency, and contribute to environmental stability. This move aligns with PIF’s sustainability goals and reflects its commitment to fostering environmentally responsible practices in the acquired company. Muhammad Al-Dawood, head of the Industrials and Mining Sector in MENA Investments at the fund, said: “PIF’s investment in MEPCO reflects the attractive opportunities for growth in promising sectors such as recycling, retail and building materials.” He added: “This investment enables MEPCO to expand its sustainable production activities while focusing on high value-added products and growing its export activities.” The Jeddah-based firm is one of the leading manufacturers specializing in the production and recycling of paper products in the Middle East and North Africa region. The investment is anticipated to contribute to MEPCO’s expansion strategy, particularly in the production of specialized building materials like gypsum board. PIF has a diversified portfolio of investments in the construction services sector to support the sustainable growth of the Saudi economy, attract local and foreign investments, expand operational capacity and transfer technology, the press statement added. The investment in MEPCO is also expected to bolster the private sector in Saudi Arabia, enhance local content, boost ready-for-market exports of high-value products, and improve overall quality and competitiveness. “PIF’s investment further enables the implementation of our expansion strategy and captures significant growth potential, both locally and regionally,” said Sami Al-Safran, CEO of MEPCO. “This will help create new opportunities, as MEPCO continues its journey to become a national champion in our industry. Our company strives for sustainable growth and a better future, thanks to its unique strategy which integrates paper products and waste management,” he added. The transaction received approvals from relevant authorities and MEPCO’s shareholders, who endorsed it at an extraordinary general meeting.