Lana purchases Kian Plastic factory for manufacturing plastic medical supplies

Lana Medical Co. signed a contract today, Nov. 5, to purchase Kian Plastic Factory in preparation for its conversion to the manufacture of plastic medical products.

The total investment amounts to SAR 5 million, which includes SAR 3.1 million for the purchase of the factory and SAR 1.9 million for the development and conversion of production lines to the medical segment.

The company will acquire the factory's assets, licenses, and buildings, excluding the trade name. The investment is financed through Islamic financing via Sukuk Capital, with no related parties to the deal, the company said.

Strategically located in Sudair Industrial and Business City in Riyadh Province, the factory covers an area of 3,600 square meters and currently has a production capacity of 40 to 50 tons per month. This capacity is expected to increase to between 150 and 200 tons per month following development.

Lana emphasized that this investment is driven by the need to expand its operational segments and enhance production capabilities to meet customer needs and the growing demand for its products.

This step aligns with the company’s expansion strategy, which aims for geographical outreach. The enhanced production capacity at this factory will help meet demand for the company's products within the Saudi market and surrounding countries.

The company anticipates that the financial impact of this acquisition will begin to manifest in the first quarter of 2025, with gradual production starting at the factory. The timeline aims to achieve maximum production capacity within three years, starting in 2025.

The factory is expected to positively contribute to increasing the company’s production capacity, sales, and profits, beginning in the first quarter of 2025, with progressive growth in the company’s earnings as the factory develops and its production capacity increases.