15 April, 2019

Finland's Huhtamaki opens flexible packaging unit in Egypt

Greenfield project in 6th of October City set up at an investment of €23mln

Image used for illustrative purpose. An aisle of foodstuffs on pallets is seen at a distribution warehouse on the outskirts of Melbourne August 6, 2010. The Australian dollar held within striking distance of the week's highs on Friday as the country's central bank predicted brisk economic growth ahead, while sounding content that past rate hikes would curb inflation at least for now.

Image used for illustrative purpose. An aisle of foodstuffs on pallets is seen at a distribution warehouse on the outskirts of Melbourne August 6, 2010. The Australian dollar held within striking distance of the week's highs on Friday as the country's central bank predicted brisk economic growth ahead, while sounding content that past rate hikes would curb inflation at least for now.

REUTERS/Mick Tsikas

15 April 2019
Finland-headquartered food and drink packaging company Huhtamaki has opened its first flexible packaging plant in Egypt, it was announced last week.

The greenfield facility was set up at a total cost of €23 million with Huhtamaki's share at approx €17 million, the company said in a press statement.

Hutamaki's local partner Ayman Korra told Thomson Reuters Projects that the project is a joint venture (JV) owned 75 percent by Huatamaki Global and 25 percent by Korra, who has been Huhtamaki's local partner in the its fibre packaging business, located in Sadat City, since 2003.

He said the new plant in 6th of October City occupies only 12,000 square metres (sqm) out of the total land area of 37,000 sqm to accommodate future expansion plans, adding that the plant's production target during the first year of operations is about 20,000 tonnes.

Korra said the 70 percent of the product's raw material is locally sourced, pointing out that the JV aims to sell 50 percent of the output in the domestic market and export the rest to African and European markets.

The company used to serve its flexible packaging customers in Egypt from its units in the United Arab Emirates and India, according to the press statement. The new plant would help the company shorten lead times to customers, it nted.

Huhtamaki serves its global customer base through a network of 78 manufacturing units and additional 24 sales-only offices in 34 countries, according to the press statement.

(Reporting by Eman Hamed; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)


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