BUSINESS STRATEGY

Another FMCG manufacturer announces more investment in Egyptian plants

By our News Team | 2023

Japanese-based health products multinational is to spend US$40-million on establishing a second facility in the North African nation.

A major Japanese manufacturer and marketer of pharmaceuticals and health foods has announced plans to establish a US$40-million manufacturing facility in Egypt.

This comes shortly after Swiss multinational food and beverage giant, Nestlé, confirmed it is to invest in adding four new production lines to its existing facilities in the North African country.

Illustration courtesy of Otsuka Pharmaceutical

Several major global companies are working to localise key production and raw-materials sourcing within their African operations to minimise the need for increasingly expensive imports.

Otsuka Pharmaceutical says it plans to establish the new factory in Egypt’s 10th of Ramadan City, a modern metropolitan area located close to Cairo.

The company – which has brands such as JogMate, CalorieMate, Energen and Ion Water in its consumer-focused portfolio – has long-standing links with Egypt through the local Egypt Otsuka Pharmaceuticals business established in 1992.

Many of the products will be for export

“Egypt Otsuka is planning on exporting healthy food to countries in the Middle East, where demand is high due to a growing number of individuals altering their eating habits and embracing a balanced nutritional diet and active lifestyle,” Food Business Africa reports.

Quoting statistics from Data Bridge Market Research, Food Business Africa says the Middle East & Africa health and wellness food market will grow at a CAGR of 8.3% during the forecast period of 2022 to 2029.

According to Ahram Online, the English-language news website, Egypt’s Industrial Development Authority (IDA) has allocated 95,000 square metres of land to Otsuka Egypt to build the new factory, which will be the company’s second facility in 10th of Ramadan City.

The announcement of the new project was made by Ahmed Zaghloul, President of Egypt Otsuka, during a meeting with IDA’s Chairman, Mohamed Abdel-Karim.

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