Saudi Printing & Packaging (SPP) has agreed to sell its polypropylene cup and plastic container production lines in the UAE to Al Aamal Al Dhahabiya General Trading for SR1.12m ($297,583).
The equipment is run by Commercial United Packaging Company (CUPCO), an entity wholly owned by SPP through Emirates National Factory for Plastic Industries.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A corporate filing confirmed that the lines recorded a book value of SR6.1m on 30 September 2026.
The disposal will yield an estimated non-cash loss of roughly SR5m, which the group will record in the financial statements covering the period of final completion.
Management positioned the sale under the second pillar of its corporate strategy, which mandates reviewing divestment opportunities for non-strategic assets and projects.
By offloading these assets, the group intends to redirect operational capacity toward rapidly expanding, high-margin core segments, particularly as single-use plastic products confront subdued profit margins and heightened regulatory pressure regionally.
The transaction concurrently addresses the framework’s fifth pillar, targeting debt restructuring and liquidity improvements.
Terminating capital expenditure on low-margin activities is slated to lessen overall fiscal pressures, stabilise the balance sheet, and preserve sustainable value for shareholders.
The divestiture follows a prior filing submitted by SPP to Tadawul concerning its updated operating trajectory.
In February, SPP moved to shut down operations at Al Madinah Packaging Co (City Pack), an entirely owned UAE subsidiary, following board approval to exit non-core holdings.
SPP noted that ending City Pack’s activities is expected to contribute to its debt restructuring efforts and liquidity management by addressing losses from underperforming operations.
