Obeikan Glass OKs SAR 520M flat glass line

Obeikan Glass Co.’s board of directors approved the establishment of a second flat glass production line at its current factory located in the Royal Commission for Jubail and Yanbu (RCJY).

The new line will have a production capacity of 650 tons per day, with an estimated project cost of approximately SAR 520 million, according to a statement to Tadawul.

The project will primarily be funded through government financing, bank loans, and internal cash sources, with completion and the start of commercial production expected by 2027, the statement added.

The new line will focus on producing various types of flat and colored glass for the automotive industry, construction projects, and mirrors. This expansion aims to boost production capacity to meet growing market demand and aligns with the company's strategic goals, Obeikan Glass explained.

The company expects a positive impact on financial results due to increased revenues from enhanced production capacity and a larger market share, noting that there are no related parties involved in this project.

Further announcements will be made regarding the project launch, its financial impact, pilot production, and any other executing or contractual parties involved in the project, the statement added.