EGYPT – Otsuka Pharmaceutical, a leading Japanese manufacturing company, has announced plans to set up a US$39.8 million healthy food and energy drinks factory in Egypt’s 10th of Ramadan City.
The Japanese giant already has a presence in Egypt through the Egypt Otsuka Pharmaceuticals Company which was set up in 1992.
The Egyptian subsidiary has a factory in the 10th of Ramadan City that manufactures medicinal products including infusions/injections fluids, amino acids, and tube-feeding equipment.
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.
Data Bridge Market Research analyses that 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.
Ahmed Zaghloul, president of Egypt Otsuka, during a meeting with IDA’s Chairman Mohamed Abdel-Karim, revealed that apart from the new investment the company was considering launching an initial public offering on the Egyptian Exchange.
Japanese investments in Egypt surged in FY2021/2022 to $1.1 billion, up from $1.6 billion in FY2020/2021 even as trade between the two countries declined by 26.3 percent.
Egypt’s food industry exports increased by three percent year-on-year in the first two months of 2023, registering US$665 million, up from US$645 million.
Earlier, Swiss multinational food and beverage giant, Nestlé revealed plans to add four new production lines to its existing facilities in Egypt.
Chairman and CEO of Nestlé Egypt and Sudan, Tarek Kamel, said three lines would be for food products, and the fourth would be for dairy products.
The first food production line will start operations in December this year, according to the CEO of Nestlé Egypt
Kamel said Nestlé currently has three factories in Egypt – two in the Sixth of October City and one in Banha City – incorporating 65 production lines in 10 segments.
He added that Nestlé is gradually localizing the sourcing of raw materials to reduce imports, pointing out that the company has succeeded in completely localizing 16 inputs.
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