Saudi Printing and Packaging Co (SPPC) is discontinuing operations of its fully owned subsidiary, Al Madinah Packaging Co (City Pack), in the UAE.
The company’s board approved the closure as part of SPPC’s strategy to review and exit from non-core assets, according to a statement issued to Tadawul.
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The decision is aimed at reallocating resources towards higher-growth and value-added packaging sectors within SPPC’s key target markets.
SPPC 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.
The company stated that the decision is aimed at sustainable value creation for shareholders and improving the group’s overall performance.
SPPC will assess any consequences from the shutdown and provide updates regarding significant developments or financial effects as they arise.
City Pack operates under Emirates National Factory for Plastic Industries, which holds Dh10m ($2.7m) in capital.
In August 2025, SPPC initiated a new strategic direction 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.
