This image will be automatically disabled when it gets reported by several people.
Expansion plans will not be affected by transient sugar crisis: Edita Company securing sugar needs through supply contract with private company, says chairperson Hani Berzi
Investor relations and business development director at Edita, Menna Shams El-Din, said that the investment plan the company set to expand its production lines will not be affected by the transient crisis of seizing approximately 2,100 tonnes of sugar by the authorities. The expansion aims to increase the production capacity directed to the local and Gulf market. Edita announced in a press release on Wednesday that the prosecution ordered to release the sugar seized from its factory on 22 October in Beni Suef, which led to the suspension of the company's operating activities until the crisis was resolved. Shams El-Din said that the company's plan includes expanding in the Gulf markets after a contract was completed with the Saudi Khalifa Abdulrahman Algosaibi Cold Stores (KACS) with the aim of distributing Edita's products Hoho's, Twinkies, and Tiger in the Saudi market. Edita adopts an expansion strategy based on the new brands it obtained the right to produce and distribute recently from the international Hostess company. Edita announced last year that it agreed with Hostess Brands on distributing the three brands in 12 new countries in the Middle East and North Africa, in addition to acquiring the right to regionally manufacture and distribute 11 other products owned by Hostess Brands. In the same context, Edita announced that it obtained EGP 170m of financings from Arab Bank with the aim of completing the constructions of its new factory E08. Moreover, it obtained a €6m loan; the amount will be allocated to import the production lines from abroad. Shams El-Din said that Edita hopes to completely finish the E08 factory for food products located in 6th of October City in the second half of next year. Changes occurred in the cost of the project—the initial cost stood at about EGP 160m, but went up due to the successive increases in the US dollar price. Shams El-Din mentioned that the company is working on providing the needed amounts of sugar to resume operations at a normal rate, as its annual sugar needs are about 34,000 tonnes. Chairperson and managing director of the company, Hani Berzi, commented in the press release on the company's sugar supplies, saying that it has a supply contract with a private company through which it receives sugar in accordance with the market's prices.
