Saudi Printing and Packaging Company has divested polypropylene cup and plastic container production lines at its UAE subsidiary CUPCO as part of a restructuring strategy aimed at withdrawing from non-core assets, improving liquidity and concentrating resources on higher-value business segments.
Saudi Printing and Packaging Company (SPPC) has announced the sale of polypropylene cup and plastic container production lines operated by its UAE-based subsidiary, Commercial United Packaging Company (CUPCO), for AED 1.1 million (approximately SAR 1.12 million).
The transaction, completed on 15 October 2026 and disclosed to shareholders on 18 October, involved the sale of the production assets to Alamal Al-Dhahbya for General Trading Co. LLC. CUPCO is wholly owned by SPPC through Emirates National Factory for Plastic Industries.
The disposal forms part of the Saudi company’s restructuring strategy announced in August 2025, which includes reviewing non-strategic operations and reallocating resources towards core product categories and higher-growth markets.
SPPC identified increasing regulatory restrictions on single-use plastic products across the region, together with declining margins, as factors influencing its decision to exit these production activities.
According to the company’s disclosure, the production lines had a net book value of AED 6.00 million (approximately SAR 6.1 million) as of 30 September 2026. The sale is expected to result in a non-cash accounting loss of approximately AED 4.9 million (SAR 5 million), to be recognised in the financial period in which the transaction was completed.
The disposal also supports SPPC’s broader debt restructuring and liquidity improvement programme. By withdrawing from operations with limited profitability, the company intends to reduce financial pressures and redirect operational resources towards its priority businesses.
SPPC stated that proceeds from the transaction will be used to finance its operating activities. No related parties were involved in the sale.