(MENAFN- Daily News Egypt) Al Rabee Group-United Co. for Oriental Sweets and Juices estimated the cost of the equipment for the new juice plant at about EGP 20m. The company plans to open the plant in early 2018.
Hatem Fawzy, the deputy chairperson of the company, said the new plant is an extension of the company's four factories, and the value of its equipment is about EGP 20m that will be financed with the company's resources.
He explained that the new factory will be built on an area of 3,500 sqm, which the company has owned for a long time but was not used. The capacity of the plant will begin at 25,000 pack per month. Fawzy noted that the company also has another untapped 3,000 sqm next to the current plot, which could be used to expand the plant in the coming years.
He noted that the flotation decision led to higher production costs and, therefore, prices. This negatively impacted sales in the local market, which fell by 40%, pushing the company to turn to exports to offset the decline in local sales.
He added that the expansion of the export helps the company is secure hard cash that is necessary to import raw materials and to minimise the impact of the high dollar exchange rate. The company is now exporting 40% of its production to 14 Arab and African countries, such as Palestine, Saudi Arabia, Oman, Libya, Kuwait, Kenya, Somalia, Guinea, and Ethiopia.
The company expects a growth of about 8% in its sales by the end of the current year to reach EGP 52m, versus EGP 48m last year.
Al Rabee Group-United Co. for Oriental Sweets and Juices was established over 20 years ago, as an Egyptian joint stock company and began producing halve and tahini in 1989.
The company opened a juice-production plant in 2000. In 2008, it increased its production lines and added new products, such as tomato sauce and jams.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.