Beko Egypt for home appliance, a subsidiary of Turkish white goods conglomerate Arçelik, announced on Wednesday that it has appointed Hassan Allam Construction to build its manufacturing plant in Egypt.

In December 2022, Zawya Projects had reported that Beko laid the foundation stone for a new $100 million factory in Egypt in 10th of Ramadan Industrial Zone.

Beko Egypt said in a press statement that Hassan Allam Construction will handle all civil, architectural, electrical and mechanical works of the project that spans over 114,000 square metres, with a total construction area of 56,000 metres, encompassing the main production area, admin buildings, and other structures, with delivery scheduled in 10 months.

The statement said the factory has been designed as zero-waste manufacturing facility and will incorporate waste management, recycling, water saving technology and renewable energy, adding that the company is targeting LEED Gold certification for the facility.

Umit Günel, General Manager of Beko Egypt said the new factory will develop local supplier ecosystems while supporting the government's long-term strategy to drive industrial localisation and establish Egypt as a production and export hub to overseas markets.

The plant, which will have an annual capacity of 1.5 million household appliances, is expected to start production by the end of 2023. It will serve as an export hub, with more than 60 percent of its production allocated to Europe, the Middle East & Africa representing around $250 million in annual export potential. The first phase is set to be allocated for producing eco-friendly cookers and refrigerators.

(Writing by Eman Hamed; Editing by Anoop Menon)