New Coca-Cola factories in Egypt scheduled to begin production by end of 2015; company intends to invest US$500M in country over next three years
June 19, 2014
– World’s largest beverage provider, Coca-Cola is keen to achieve double digit growth from the Egyptian market following the establishment of new factories in the North African country. The factories are expected to commence production by the end of year 2015.
According to Curt Ferguson, Coca-Cola's Middle East and North Africa President, Egypt is going to be one of Coca-Cola’s key anchor market given the country's attractive population size.
The Atlanta-based soft drink maker had announced its intention to spend $500 million in investment in Egypt over the next three years.
One of the projects being lined up includes the construction of a $100 million fruit juice plant in partnership with Aujan Coca-Cola Beverages Company which is scheduled to take off by 2017.
Other investment prospects include building a plant for sparkling drinks and water like Fanta, Coke and Sprite in a soon to be acquired property between Cairo and Alexandria, as well as capacity building of its existing factories in the North African nation. The remaining funds will be used to cover capital spending.
From its concentrate plant in Cairo – currently responsible for almost a third of the company's produce – Coca-Cola intends to double its exports from this facility within about three years; Ferguson told Reuters.
Coca-Cola Egyptian plants exports products to more than 40 countries around the world and provides job for about 12,000 workers. The new investment will create an additional 120,000 indirect job opportunities for people living in Egypt.
The company's investment is coming at a time when Egypt is recovering from three years political and economic turmoil that has derailed foreign investment, given the challenges and court rulings faced by foreign investors regarding the validity of their contracts signed in last couple of years.
However investors are now expressing interests in investing the country. The transition in electing a new president is expected to subdue majority of the economic challenges faced by many foreign investors which include security and political stability.
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