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Kraft Heinz Egypt Unveils EGP 2 Billion Factory Expansion

September 30, 2024

Kraft Heinz Egypt celebrated the inauguration of its newly expanded production facility in 6th of October City on Saturday, following a two-year project with a total investment of EGP 2 billion (USD 50 million).

The expansion includes seven new production lines, a sewage treatment unit, and an upgraded administrative building, significantly boosting the factory’s output and reinforcing Egypt’s role as a key hub for the company’s regional and international operations.

At the inauguration event for the expanded facility, US Ambassador to Egypt Herro Mustafa Garg highlighted the strategic importance of the expansion and noted Egypt is the only country in the Middle East where Heinz is present.

She further emphasized that the expansion marks a 60 percent increase in production capacity, positioning Egypt as a strategic hub for Africa, Europe, and the broader Middle East.

The newly upgraded factory now spans 30,000 square meters, expanding from its previous 20,000 square meters, and aims to increase production from 12 percent of total output being exported to 20 percent. The new production lines include facilities for bottle filling, jar filling, ketchup and mayonnaise production, sachet filling, and Doypack filling. The facility’s production capacity is expected to rise to 53,000 tonnes annually.

Commitment to Local Sourcing and Sustainable Growth

Kraft Heinz Egypt has committed to strengthening its local sourcing practices, with 90 percent of ingredients used in its Cairo facility now sourced locally. The company also works closely with Egyptian farmers, cultivating 2,000 acres of locally grown tomatoes, bolstering its connection to the local economy.

Bruno Keller, Zone President for West and East Emerging Markets at Kraft Heinz, remarked on the company’s broader vision, noting that emerging markets, such as Egypt, are key to Kraft Heinz’s long-term growth plans.

Kraft Heinz’s new sewage treatment unit at the expanded facility also highlights the company’s commitment to sustainability. The unit not only aligns with Egypt’s environmental goals but also ensures that the factory meets international standards for product exports, particularly to Europe.

Egyptian Officials Praise Expansion

The inauguration ceremony was attended by key government officials, including Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport; Hassan El-Khatib, Minister of Investment and Foreign Trade; and Sherif Farouk, Minister of Supply and Internal Trade.

In his remarks, Al-Wazir emphasized the expansion’s significance in Egypt’s food production landscape, stating that it will strengthen Egypt’s position as a regional manufacturing and export hub.

Al-Wazir also highlighted that the factory employs 600 workers and that its expansion aligns with the Ministry of Industry’s broader goals of increasing production capacities in key sectors, including food industries.

The expansion underscores the strong economic ties between Egypt and the US. Ambassador Garg lauded the excellent partnership between the two nations, noting that Kraft Heinz’s expansion is just one example of the ongoing investment discussions between US companies and Egyptian officials. Garg added that the coming period will witness more US investments in Egypt.

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