In a strategic move aimed at enhancing its operational efficiency and focusing its resources on promising sectors, the Saudi Printing and Packaging Company (Printing and Packaging) announced that its Board of Directors has approved the permanent closure of City Pack, a subsidiary of Al Madina Packaging Company, in the United Arab Emirates. City Pack, with a capital of AED 10 million, is a wholly owned subsidiary of Printing and Packaging, through its subsidiary, Emirates National Factory for Plastic Industries.
Decision context within the transformation strategy
This decision, made at the board meeting on Monday, is a direct implementation of the second pillar of the company’s previously announced strategy, which focuses on exploring options for divesting non-strategic assets and projects. Printing & Packaging, a prominent company listed on the Saudi Stock Exchange (Tadawul), aims to redirect its investments and efforts toward the rapidly growing, high-value-added packaging sectors within its key target markets. This shift reflects strategic maturity and a desire to keep pace with the dynamic changes in the global packaging industry, which is increasingly moving toward innovative and sustainable solutions.
Economic importance and expected impact
Financially, the decision to discontinue the activity serves the fifth pillar of the company's strategy, which aims to support its debt restructuring project and improve liquidity levels. By ceasing funding for non-profit operations, the company seeks to stem the financial losses and alleviate the burdens that have been weighing on its financial position. This measure is expected to significantly enhance the group's financial efficiency, benefiting shareholders by generating sustainable value and improving overall performance. This step is viewed in economic circles as prudent resource management, demonstrating management's commitment to achieving long-term profitability rather than clinging to assets that do not generate the desired return.
Future outlook
The company confirmed in its statement that it will immediately begin assessing all the financial and operational implications of this decision. It also committed to disclosing any material developments or revealing the final financial impact in due course, in accordance with the regulations and bylaws of the Capital Market Authority. Investors and analysts are awaiting these disclosures to evaluate the actual impact on the company's financial statements, with positive expectations that this step will contribute to building a more robust financial foundation for the company's future growth in its core sectors.
