Japan’s Otsuka Group is set to make a significant leap in the Middle Eastern market with a new $40 million manufacturing plant in Egypt. The foundation stone was recently laid in the 10th of Ramadan City, marking the company’s fifth facility in the country. This move underscores Otsuka’s long-standing commitment to the Egyptian market and its strategic plans for regional expansion.
Investment Details and Project Timeline
The groundbreaking ceremony was spearheaded by Egypt’s Minister of Investment and Foreign Trade, Hassan Al-Khatib. The new factory will initially focus on producing Oronamin C, a popular health drink. Ahmed Zaghloul, Chairman of Otsuka Arab Health Nutrients, outlined the ambitious plans for the project.
- Investment Amount: $40 million in the first phase
- Site Size: 95,000 square meters
- Construction Start: October 2024
- Completion Date: September 2025
- Production Start: December 2025
- Sales and Exports Begin: January 2026
This phased approach ensures that the facility will be operational by the end of 2025, with full production capabilities kicking off shortly thereafter. The strategic location in the 10th of Ramadan City positions the plant close to key transportation and logistics networks, facilitating efficient distribution across the region.
Boosting Local Economy and Enhancing Production Capacity
Otsuka’s new plant is expected to have a profound impact on the local economy. With an annual production capacity of 100 million units and a localization rate of 50%, the facility will significantly contribute to Egypt’s industrial landscape.
Key Benefits:
| Benefit | Description |
|---|---|
| Job Creation | Thousands of new jobs for local workers |
| Skill Development | Training programs to enhance workforce expertise |
| Economic Growth | Increased production boosts GDP and exports |
| Supply Chain Enhancement | Strengthens local suppliers and logistics networks |
By focusing on local production, Otsuka not only meets regional demand more effectively but also supports Egypt’s goal of becoming a central manufacturing hub in the Middle East and North Africa (MENA) region.
How Otsuka Group’s Expansion Shapes the MENA Market
Otsuka Group’s strategic investment in Egypt is part of a broader plan to solidify its presence in the MENA region. Since entering the Egyptian market in 1977, the company has expanded its footprint across various sectors, including pharmaceuticals, dietary supplements, and health drinks.
Wassim Merheby, CEO and Co-founder of Verofax, commented, “Our collaboration with Otsuka and Jawraa ensures that we deliver high-quality, culturally resonant products that meet the diverse needs of consumers in the MENA region.” This expansion is a testament to Otsuka’s dedication to innovation and excellence in customer service.
Future Prospects and Regional Influence
Looking ahead, Otsuka aims to leverage Egypt’s strategic location to serve as a gateway for its operations across the Middle East and North Africa. The company plans to explore further investments and partnerships that will enhance its market presence and drive sustainable growth.
Nicholas McGeehan, director at human rights organisation FairSquare, stated, “These investments are crucial for building resilient economies and fostering international collaborations that benefit both local communities and global markets.” Otsuka’s commitment to sustainability and ethical practices will play a pivotal role in shaping its future endeavors in the region.
