Saudi Printing and Packaging to close UAE subsidiary

Core Viewpoint - Saudi Printing and Packaging Co (SPPC) is discontinuing operations of its fully owned subsidiary, Al Madinah Packaging Co (City Pack), in the UAE as part of a strategy to exit non-core assets and focus on higher-growth packaging sectors [1][2]. Group 1: Strategic Decisions - The closure of City Pack is intended to aid in SPPC's debt restructuring efforts and improve liquidity by addressing losses from underperforming operations [2]. - SPPC's new strategic direction initiated in August 2025 focuses on operational efficiency, organizational restructuring, product development, and expansion in core markets such as Saudi Arabia and the Gulf region [3]. Group 2: Strategic Framework - 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 program to reduce financing costs [4]. - SPPC entered a financing agreement with Saudi Research and Media Group for SR75 million ($19.9 million), maturing at the end of December 2028 [4].