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BUSINESS STRATEGY

Nestlé adds four new production lines at its Egyptian operations

By our News Team | 2023

This is part of a pan-African strategy to localise key production and raw-materials sourcing to minimise increasingly expensive imports.

Multinational food and beverage company Nestlé is to add four new production lines to its existing facilities in Egypt. 

 

This is part of an ongoing pan-African strategy to localise key production and raw-materials sourcing to minimise increasingly expensive imports.

Business Strategy

Nestlé Headquarters in Vevey, Switzerland. The company is localising key production and raw-materials sourcing to minimise expensive imports. Photo credit: Nestlé

According to the Chairman and CEO of Nestlé Egypt and Sudan, Tarek Kamel, three of the new production lines will be for food products, while the fourth will be for dairy products. The first food line will begin operations in December this year.

 

This strategy will not only help Nestlé to meet the growing demand within the country, but also help to position Egypt as a potential export hub for Nestlé products to other markets in the region.

 

Nestlé currently exports its products to 22 countries in MENA, Africa, Europe, South America and North America, with the company setting a target of doubling its exports in 2024.

 

“Nestlé has a long history of operating in Egypt, and this expansion underscores the company’s commitment to the Egyptian market’s potential,” the publication Food Business Africa reports.

 

Strong rapport with Egyptian consumers

 

“The company has maintained a strong rapport with Egyptian consumers by delivering high-quality products that cater to local tastes and preferences.

 

“With the addition of these four production lines, the company is poised to continue its journey of delivering innovative and sustainable products to consumers across Egypt and the broader MENA region.”

 

Mahira Hassan, Head of the Institutional Relations and Sustainability Sector at Nestlé Egypt, added that the company is committed to using 100% renewable electricity in its operations by 2026. 

 

This year, the company hopes to procure up to 30% of the electricity required for its Egyptian operations from renewable energy, especially solar power.

 

Nestlé is also working on a project to reduce the use of plastic packaging materials and support recycling.

 

This month, Nestlé has unveiled a new US$4,4-million manufacturing plant near Pretoria in South Africa. Similar to Egypt, by producing locally the company aims to streamline supply chain operations, reduce environmental impact, and ensure fresher products for consumers.

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