Finnish plastics company Huhtamaki on Thursday announced the launch of a new, state-of-the-art flexible packaging unit in 6th of October city, Egypt.
The project’s total cost amounted to EGP 1.5 billion, the global food and drink packaging firm said in a statement.
Huhtamaki’s Egyptian unit marks the entry of the Finland-based company into manufacturing flexible packaging in Africa.
The newly-opened facility will serve Huhtamaki’s flexible packaging customers in Egypt as well as export its products into other African countries and Europe, the statement said.
Built over an area of 37,000 square metres, the manufacturing unit is expected to witness an expansion in the future, Huhtamaki noted.
“The Egyptian market is sizeable, and with the rapid population growth in Africa, we expect future growth opportunities both for us and our customers. Until now we have served flexible packaging customers in Egypt from our units in the United Arab Emirates and India. With the new plant we can offer our current and new customers – both in Africa and Europe – the same top quality with shorter lead times,” said Huhtamaki’s executive vice president Olli Koponen.
The new facility is owned and operated as a joint venture of which Huhtamaki owns 75%, while Ayman Korra, Huhtamaki’s joint venture partner in the Egyptian fibre packaging business, owns the remaining 25%, according to the statement.
Koponen noted that Huhtamaki invested up to EUR 17 million from the total investment cost of the project, while the other partner provided the remaining amount of EUR 6 million.
Huhtamaki intends to raise its capacity in Egypt over the coming years.