Unilever invested EGP 1 bn in Egypt operations in 2020, eyes new facilities
Unilever spent EGP 1 bn on its Egypt operations last year as part of plans to ramp up its exports over the coming years, Unilever Egypt Chairman Ashraf Bakry told Al Mal. It’s unclear how much of this figure is capital expenditure, but at least EGP 200 mn went towards the annual operating expense of maintaining its production lines. The British consumer goods company hopes to double its exports over the next three years from a current USD 200 mn.
It sounds like the company has chosen Egypt to be its regional export hub: The company is focusing its efforts on Egypt, citing its strategic location and plethora of trade agreements, which make it easier for it to export into Europe and Africa. And lower labor costs mean that Unilever is also considering establishing a regional service center, Bakry said. Enterprise approached the company for comment for the story but a representative couldn’t be reached.
And offshoring could be in the works: The company is in talks to relocate some of its manufacturing facilities and service centers in Europe and Africa to Egypt, he added. This would come in addition to the company’s four facilities located in Alexandria and Sixth of October that produce food and personal hygiene products.
IN OTHER INVESTMENT NEWS-
Plastic waste recycling company Green Minds plans to invest EGP 100 mn in expanding its recycling capacities, Chairman Muhammad Dief told the local press. The expansion should up the company’s monthly recycling capacity to 1.3k tonnes, and Deif says they are eyeing further expansion in waste collection and recycling under the recent Waste Management Act.
The Canal Company for Ropes Natural and Synthetic Fibre Products and Norwegian water treatment company Sterner are setting up an aquaculture complex after signing a shareholder’s agreement yesterday. The fish farm is expected to produce 25k tonnes of fish annually, and will include a water treatment plant, hatcheries, marine laboratories and a factory for fish processing and packaging, as well as a training academy. The complex’s waste will be recycled at an on-site factory to produce organic fuel and fertilizers. The Canal Company for Ropes Natural and Synthetic Fibre Products is a Suez Canal Authority company.