Mars to double investments in Egypt to EGP 2 bn, ramp up exports from Egypt to USD 100 man by year’s end
INVESTMENT WATCH- Mars to double investment in Egypt to EGP 2 bn this year: Mars Wrigley Confectionery plans on doubling its investments in Egypt to EGP 2 bn by year’s end, which “reflect[s] Mars’ confidence in the Egyptian economy,” said Mars Wrigley Confectionery Global President Martin Radvan. The announcement came at the inauguration yesterday of the first phase of its EGP 750 mn expansion of its 6 October City factory, which will include the commissioning of two new production lines, the company said in a statement (pdf). Mars expects these latest expansions will grow its exports out of Egypt to USD 100 mn by the end of 2018, Regional President for the Asia-Australia, Middle East & Africa Region Ehab Abou Oaf said. Around 80-90% of the factory’s output is earmarked for export to 20 markets in the region. The new production lines will add 79 new products to its lineup once the second phase of the expansion is complete in six months’ time, said the factory’s director, Ahmed Al Hiraky. The expansion will see total capacity rise to 70k tons per year at the end of 2018, up from 50k tons now.
The move shows that “American companies want to be part of the growing momentum in the Egyptian economy,” US Chargé d’Affaires Thomas Goldberger said in a statement from the US embassy (pdf). Trade and Industry Minister Tarek Kabil lauded the expansions as a “message” to foreign investors that Egypt is an attractive market.
Domestic chocolate manufacturers are looking to follow in Mars’ footsteps. Sima Food Industries plans to add two new production lines to its chocolate factory, while the Alexandria Confectionery & Chocolate Company — which produces Corona chocolate — will begin constructing a new 6 October City factory this year, Al Borsa reports.