A Jeddah company hoping to capitalise on the region's booming packaging industry recently commenced production of paper material for cartons.

Middle East Paper Company (Mepco), part of the Dammam-based Al Muhaidib Group, has facilities designed for producing 100,000 tonnes per year, comprising 55,000 tonnes of testliner and 45,000 tonnes of fluting material. But production, which began last November after months of preparations and trials, averages 3,700 tonnes per month of fluting material only. Sales and marketing manager Shaikh Faisal Mubin said full production would be realised before long.

"We expect that to happen in a few weeks, after the machines stabilise. It's a big operation and we're testing the system," he said. Over Meccanica of Italy supplied the board machine, which has a finishing width of 2,500mm and an operating speed of 850m/min. Comer Spa, also Italian, provided the stock-preparation plant. Shaikh Faisal said Italian technicians were on hand to help and would be around until the plant reached full operational capability.

The mill is using recycled paper as locally made pulp is not available. The company bought a waste paper collection company in Jeddah and is meeting most of its requirements from the collected material.

Already, Mepco has been sending 15 per cent of its production to Arab states, the official said. The company estimates demand in Saudi Arabia is 90,000 tonnes for testliner and 100,000 tonnes for the fluting medium with demand in the rest of the GCC being 65,000 tonnes and 75,000 tonnes respectively. The growth in Gulf consumption was put at between three and five per cent annually. At normal production, Mepco expects to sell 75 per cent of its production in Saudi Arabia with the rest going to other GCC states and North and Central Africa.

The Gulf region has five factories producing similar material including two in Saudi Arabia and one each in the UAE, Kuwait and Oman.

"Mepco will be the first of its kind in the Gulf in that our machinery and technology are the latest. We are introducing a different technique to produce testliner and fluting material. Our equipment will have two head boxes while others have just one," commented Shaikh Faisal, adding that the products would be both highly marketable and environmentally friendly.

The Al Muhaidib group has interests in metals, building materials, hardware, wood products, contracting, food products, industrial paints, stores and transport.

It was founded 60 years ago by Shaikh Abdul Kadir bin Abdul Muhsin Al Muhaidib and includes 15 manufacturing and trading companies most of which are based in Dammam and Riyadh. Among them is Al Muhaidib Metal Industries, one of the region's leading companies of its kind. Other well-known companies in the group are Saudi Industrial Paints Company, United Wood Products Company and Al Muhaidib Building Materials.

The group's main trading company, AK Al Muhaidib and Sons, Dammam, coordinates the activities of the member firms.