EGYPT- Food and confectionary manufacturer Mars Egypt has revealed a US$250 million capacity expansion investment of its 6th October factory over the next 18 months.
The investment is intended to increase production capacity from 250,000 tons annually to 400,000 tons yearly.
The planned expansion will add two new production lines to its six current lines and 15 new products to its 150-product portfolio.
The expansion is expected to be complete by the start of 2026.
The investment is part of the company’s strategy of diversifying its confectionary portfolio and market reach. This strategy is expected to increase market share and drive sales, especially in the Middle East.
According to the company, this initiative will expand its market reach beyond the current 40 countries in the Middle East and Africa.
The confectioner has used similar investment and expansion efforts in the past.
In 2018, Mars Egypt added two new production lines to the processing facility investing US$42 million, which helped increase the company’s exports outside Egypt to US$100 million at the end of the that year.
Ehab AbouOaf, the company’s former regional head for Africa and the Middle East, said, “The industrial expansions we are witnessing today not only reflect an increase in production capacity at our factory but also represent a true turning point in our operations, making Egypt the core of our industrial and exporting processes in the region.”
These investments have been successful and have helped facilitate the company’s growth and expanded reach over the years. Since its entry into the North African country, the company has invested more than US$500 million in Egypt.
The company’s successful expansion efforts are also attributed to a streamlined supply chain line enhanced by favorable relationships with retail partners and suppliers across the Middle East and Africa.
In addition to expansion, Mars Egypt also revealed the plan is part of its overall sustainability strategy.
Osman Hellal, the company’s plant director, concluded, “Mars places great emphasis on environmental protection and sustainability, implementing the latest technologies in production processes to reduce greenhouse gas emissions, efficiently manage waste, minimize water consumption and reuse, and handle non-natural refrigerants, among other things.”
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