The American food company Kraft Heinz Egypt recently inaugurated its newly expanded production facility at an investment of EGP 2 billion (approximately USD 41.4 million, Euro 37.4 million).
Kamel Al-Wazir, Egyptian Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, inaugurated on September 28, 2024, the expansions of Kraft Heinz – Cairo Food Industries factory in 6th of October, in West Cairo.
The expansion, which took place over the past two years, has introduced seven new production lines, a sewage treatment unit, and an upgraded administrative building to meet the increasing demands of both local and international markets.
In his speech during the inauguration ceremony, Al-Wazir said that the factory’s area increased from 20,000 sqm to 30,000 sqm. The new expansions aim to double the production capacity to reach 53,000 tonnes annually, with around USD 50m in direct foreign investments. The seven new production lines include a bottle filling line, a jar filling line, a ketchup production line, a mayonnaise production line, two sachet filling lines, and a Doypack filling line.
Al-Wazir pointed out that the factory exports its products to Arab, African, and European markets, as part of the group’s plan to transform its only factory in the Middle East and Africa into a regional hub for manufacturing and exporting. The goal is to increase the export rate from 12% to 20%.
"This is the only country in the Middle East where Heinz is present. Following a successful experience here, Heinz has decided to invest an additional USD 50 million. This expansion signifies a 60 percent increase in production capacity, positioning Egypt as a strategic hub for Africa, Europe, and the broader Middle East," the US Ambassador to Egypt Herro Mustafa Garg stated at the inauguration event.
“With these enhancements, we aim to double our production capacities and establish ourselves as a global hub for both production and exports from Egypt,” Managing Director for North Africa at Heinz Egypt Ahmed Nagy said, read a company statement.
In addition, Kraft Heinz has significantly increased the local sourcing of its products, with 90 percent of ingredients used in its Cairo facility now sourced locally.
The company also works closely with Egyptian farmers to cultivate approximately 2,000 acres (809 ha) of locally grown tomatoes, reinforcing its commitment to the local economy. “Emerging markets are pivotal to the long-term growth of Kraft Heinz,” Zone President for West and East Emerging Markets at Kraft Heinz Bruno Keller noted.
It should also be noticed that Kraft Heinz's decision to increase its production capacity in Egypt is not insignificant. Data compiled on the Statista platform indicate that sales in the sauces and spices segment in the country are expected to reach $3.78 billion in 2024 and show an average growth of 10.44% per year until 2029. This strategic expansion by Kraft Heinz underscores its commitment to Egypt and its role in the region’s growing food production
Sources: dailynewsegypt.com, english.ahram.org.eg, agenceecofin.com