Saudi Printing and Packaging Co (SPPC) has announced the discontinuation of operations of its fully owned subsidiary, Al Madinah Packaging Co (City Pack), in the UAE. The decision comes as part of SPPC’s strategy to review and exit from non-core assets, with the company’s board approving the closure. This move is aimed at reallocating resources towards higher-growth and value-added packaging sectors within SPPC’s key target markets.
According to a statement issued to Tadawul, SPPC stated that ending City Pack’s activities is expected to contribute to its debt restructuring efforts and liquidity management by addressing losses from underperforming operations. The company emphasized that the decision is geared towards sustainable value creation for shareholders and improving the group’s overall performance.
City Pack operates under Emirates National Factory for Plastic Industries, with Dh10m ($2.7m) in capital. The closure of City Pack is part of SPPC’s new strategic direction initiated in August 2025, focusing on operational efficiency, organisational restructuring, product development, and expansion in core markets such as Saudi Arabia and the Gulf region.
The strategy comprises five pillars: improving packaging product efficiency, divesting from non-essential sectors, pursuing growth in target markets, streamlining structure for efficiency gains, and completing a debt-restructuring programme to reduce financing costs. Last year, SPPC entered a financing agreement with one of its major shareholders, Saudi Research and Media Group, for SR75m ($19.9m), with a maturity at the end of December 2028.
As SPPC moves forward with the closure of City Pack, the company will assess any consequences from the shutdown and provide updates regarding significant developments or financial effects as they arise. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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