Unilever Mashreq for Food Products SAE is set to open a new detergent factory with investments estimated at €84million (US$92 million) within two months. Marketing Director Mounir Gazayer stated that the new factory is set to be established in 6th of October City to produce washing powder. He added that the whole production of the new factory would be exported to Gulf states and Africa. Unilever Mashreq owns four plants in Egypt excluding the set-to-be-built factory which is scheduled to start production by the beginning of 2017. During the first nine months of 2016, exports of Unilever recorded €160 million and the company plans to double this volume within the coming four years, the official noted. Gazayer said that as the company possesses hard currency, it managed to evade the constraints of providing raw materials required for industry, and thus reduced costs. The increase in the price of Lipton tea is due to high tea prices globally, as well as the slight effect of the official devaluation of the Egyptian pound against the US dollar. "Lipton absorbed part of the increase to reduce the burn on the Egyptian citizen," he said. Gazayer described Egypt's food industry as an attractive field for investment, owing to its prime geographical location for transferring products between different countries. He pointed out that international agreements such as the Common Market for Eastern and Southern Africa (COMESA) and the Arab Free Trade Area (AFTA) that allows Egyptian exports to traverse the European and Gulf markets without incurring customs fees—this distinguishes the Egyptian product owing to its competitive price. The Egypt market is consumer-based. Gazeyer said that despite the decline in the citizens' purchasing power, the consumer pattern remained as it is. However, the state has tended to "schedule" consumption by buying smaller quantities in the short-term. Unilever Egypt achieved an annual growth rate of 6-7%, which is a good rate compared to growth rates in the national economy. Egyptian companies are participating in international exhibitions more and more. Their high-quality products and professionalism in dealing with customers will significantly contribute to increasing Egyptian exports aboard, Gazayer said. Exporting is a huge challenge for Egypt currently, not only to provide the hard currency required for raw material imports, but also to reduce costs. Source: Daily News Egypt
