Swiss multinational powerhouse Nestlé has unveiled its ambitious plan to augment production capabilities within Egypt by introducing four new production lines to its existing facilities. The strategic expansion underscores Nestlé’s commitment to meeting escalating demand while advancing sustainability initiatives in the region.
In a formal announcement, Tarek Kamel, Chairman and CEO of Nestlé Egypt and Sudan, detailed the plan’s key aspects. Three of the newly introduced lines will be dedicated to food products, while the fourth will focus on dairy production. Notably, the inaugural food production line is set to commence operations in December of the present year.
Nestlé’s present footprint in Egypt spans three factories, with two located in the Sixth of October City and one in Banha City. These facilities collectively host an impressive 65 production lines distributed across ten distinct segments.
Kamel highlighted Nestlé’s ongoing commitment to localizing the sourcing of raw materials, a strategic step aimed at curbing imports and strengthening local supply chains. He pointed out that the company has successfully localized 16 essential inputs, showcasing Nestlé’s dedication to sustainability and resilience.
This considerable investment in new production lines is anticipated to significantly amplify Nestlé’s production capacity within Egypt. While this strategic move addresses the surging local demand, it concurrently positions Egypt as a potential export nucleus for Nestlé products, serving diverse markets in the region.
Kamel elucidated Nestlé’s global reach, detailing the exportation of products to 22 countries across the Middle East, North Africa, Europe, South America, and North America. As the company sets its sights on doubling exports by 2024, Nestlé leverages Egypt’s strategic location to fortify its regional presence.
This expansion builds upon Nestlé’s longstanding commitment to the Egyptian market’s potential. Over the years, Nestlé has cultivated a strong rapport with Egyptian consumers by consistently delivering high-quality products tailored to local tastes and preferences.
The introduction of these four production lines not only reinforces Nestlé’s journey of innovation but also reiterates its dedication to delivering sustainable products to consumers throughout Egypt and the broader Middle East and North Africa (MENA) region.
In line with its broader sustainability goals, Mahira Hassan, Head of the Institutional Relations and Sustainability Sector in Nestlé Egypt, affirmed the company’s pledge to achieve 100 percent renewable electricity usage in its operations by 2026. Moreover, by 2023, Nestlé aspires to source up to 30 percent of its electricity needs from renewable energy sources, primarily solar power.
Hassan highlighted ongoing initiatives aimed at reducing plastic packaging and bolstering recycling efforts. As part of its global commitment, Nestlé is investing a total of US$2 billion to develop sustainable packaging solutions for food-grade recycled plastic. Additionally, the company is steadfast in its commitment to increasing the utilization of recycled PET (rPET) in packaging materials by 50 percent globally by 2025.
As Nestlé expands its operations in Egypt, the company continues to intertwine growth with a resolute dedication to sustainable practices, innovation, and enriching consumer experiences both regionally and internationally.
Source: Food Business Africa