The project, which has an estimated cost of SAR50 million ($13.3 million), follows the company's signing of a lease agreement last month for a 100,377-square-metre industrial plot with the Saudi Authority for Industrial Cities and Technology Zones (Modon), said ASG Plastic Factory in its filing to Saudi bourse Tadawul.

ASG Plastic said the expansion project is scheduled for completion in the first quarter of 2028, when commercial production is also expected to commence.

The company said it is currently in discussions with a number of suppliers and consultants for the project's construction works.

The investment will be financed through the company's own resources, with the option of securing additional funding through programmes and facilities offered by the Saudi Industrial Development Fund or other financing institutions.

ASG Plastic said the expansion forms part of its strategy to increase production capacity in response to growing market demand, in line with Saudi Arabia's industrial development objectives.

The company noted that the estimated project cost could change depending on market conditions and actual implementation costs during the execution phase.-TradeArabia News Service