ASG Plastic Factory Signs 20-Year MODON Lease in Sudair

ASG Plastic Factory Co. signed a 20-year industrial land lease with MODON, the Saudi Authority for Industrial Cities and Technology Zones, on June 22. The plot covers 100,380 square meters in Sudair Industrial and Business City.

The lease is part of a push to lift production capacity and meet rising demand, the company said in a statement to Tadawul. Annual rent comes to SAR 200,754 before VAT. ASG described the deal as a strategic step to invest in sectors with sustainable economic growth, aiming to boost returns for shareholders.

Full financial impact will show up only after construction finishes and the factory starts operating. The company gave no timeline for completion, saying only that details would come later. There are no related-party transactions involved.

Sudair Industrial City is a key zone in Saudi Arabia's industrial push, with incentives for manufacturers. ASG, a plastics producer, likely uses the extra space to add extrusion or molding lines, though the statement did not specify which product lines or capacity targets are at play.

The lease adds a long-term fixed cost – SAR 200,754 per year – but at roughly SAR 2 per square meter annually, it is cheap by industrial standards. The real expense will be the plant itself. Without a construction budget or timeline, the stock carries event uncertainty rather than immediate earnings risk.

What moves the story forward is the next disclosure: permitting progress, contractor awards, or a capex figure. Until then, the lease is a land option, not a revenue generator.