BSH open brand new, state-of-the-art factory in Cairo, Egypt! This is BSH Home Appliances Group’s first production site on the African continent, representing a significant investment in the region. The plant opening on Saturday 28th June marked this momentous occasion. The factory will produce high-quality range cookers and boasts top-notch production facilities to start a new success story for BSH.
After an evaluation of various alternatives, Electrolux Group has decided to retain its business in Egypt since the value is considered to be higher if it remains within the Group.
The business in Egypt includes sales and production of major appliances as well as water heaters and is profitable with well-established and strong brands.
“We have a successful business in Egypt and after evaluating different options, we concluded that it will create a higher value by continuing to be part of the Group”, says Yannick Fierling, President & CEO of Electrolux Group. “Our objectives going forward are to take advantage of the growing market in Egypt and increase our market share as well as to expand export from Egypt.”
The potential divestment of the Group’s business in Egypt was communicated as part of the announcement on July 20, 2023 to initiate preparations for divestment of certain assets. After today’s announcement, this divestment program is closed
Haier Group laid the foundation stone for the second phase of its Haier Eco-Friendly Complex located in 10th of Ramadan City, Egypt.
Spanning an additional 50,000 square metres, the second phase comes with a $40 million investment and a planned production capacity of 300,000 units comprising refrigerators and freezers, Ahmed El-Gendy, Haier’s Director in Egypt said.
The new expansion builds on the first phase, inaugurated in May 2023, which was established with an investment of $100 million and encompasses three factories and ancillary plants. The first phase currently produces over 1.5 million units and has created 2,000 direct and indirect jobs. The second phase is expected to create around 1,000 new jobs in the supply chain.
Beko has placed industrial localisation at the forefront of its strategy with its first manufacturing plant in the 10th of Ramadan industrial city.
The facility, covering 114,000 square metres, will heavily rely on local suppliers, with the local content expected to reach 50-60 percent, said Umit Günel, General Manager of Beko Egypt.
“Beko Egypt’s local manufacturing drive aims to make Egypt a central hub for exporting home appliances to Europe, the Middle East, and Africa, with 60 percent of production allocated for export,” he told Zawya Projects, adding that the plant is projected to generate $250 million annually in export revenues.
The plant was officially inaugurated last week.
He emphasised the company’s commitment to boosting cooperation with local manufacturers of plastics, cables, and metals to deepen localisation, adding that within the first six months of operations, Beko Egypt increased its production capacity from 1 million to 1.5 million units of ovens and refrigerators annually and expanded its supplier network.
The plant, built with an investment exceeding $110 million, will focus on producing eco-friendly home appliances designed to save water and energy in line with Egypt’s green economy goals. It is also expected to provide over 2,000 jobs for Egyptian youth, bolstering the national economy.
Günel said the facility will run on renewable energy, supporting Beko’s ‘Zero Waste’ policy. Any production waste will be recycled, with metals and other components re-evaluated for quality.
“Beko’s dishwashers, for example, will incorporate plastic parts made from recycled materials, reflecting the company’s commitment to sustainability,” he said.
The Beko Egypt official noted that, despite tough market competition, the company is ready to expand further, continuously assessing new possibilities to introduce additional products. The dishwashing segment has received fast-track approval from Egyptian authorities.
Beko, which ranks as the second-largest household appliance brands in the region and among the top ten worldwide, currently produces 65 million units annually across the globe. The company’s global operations span 58 countries with 46 production facilities in 14 countries
Haier Smart Home officially inaugurated the Egypt Ecological Park, marking a significant step in deepening its market presence in the Middle East and Africa and another milestone in its global expansion. Spanning 200,000 square meters with a designed capacity exceeding 1.5 million units, the Egypt Eco-Park’s first phase started in March with trial production of air conditioners and televisions. This month washing machines will be added, reaching a total production of more than 900,000 units per year. The second phase will include refrigerators, freezers, The Egypt Eco-Park will support the local economy by creating over 2,000 jobs
The European Bank for Reconstruction and Development (EBRD) will provide Beko Egypt Home Appliances Industries with a senior loan of up to $50 million to finance its first production plant at the industrial city in the 10th of Ramadan City, the bank stated.The loan will be mainly used to fund the construction of the building of the eco-friendly home appliances manufacturing plant as well as the establishment of a research and development center.
The new production facility is projected to commence operations by the first half of 2024
According to Egyptian media Midea Group is considering the acquisition of Zanussi brand from Electrolux Group . The acquisition deal is expected to be finalized by the fourth quarter of 2023.
In July, the Swedish giant had appointed Societè Generale to handle the sale of the Zanussi, Ideal, Faure, Zanker, Rosenlew, Elektro-Helios, Zoppas, Olympic Electric and Kwikot brands and activities in Africa and the Middle East.
Electrolux’s activities in Egypt became relevant in 2011 with the acquisition of Egyptian Olympic Group, the largest white goods manufacturer based in the Middle East. Electrolux employs 2,238 people in Egypt.
Beko Egypt is on track to open its $100 million plant in the 10th of Ramadan City in the fourth quarter of 2023, the company said in a press statement.
The disclosure was made in the statement announcing the meeting between Egyptian Minister of Trade and Industry Ahmed Samir and Umit Günel, General Manager of Beko Egypt in Ankara.
The plant, spread over 114,000 square meters, will have an annual production capacity of 1.5 million devices and will export 60 percent of its output to Europe, the Middle East, and Africa.
China’s home appliance giant Haier held a groundbreaking ceremony on Wednesday for its first Egyptian factory, aiming to boost the manufacturing industry and provide local jobs in the North African country.
Haier Egypt Ecological Park, invested by Haier Group’s subsidiary Haier Smart Home with a total of 160 million U.S. dollars, will cover an area of 200,000 square meters in the 10th of Ramadan City of northeastern Sharqia Province.
Speaking at the ceremony, Hossam Heiba, the CEO of the General Authority for Investment and Free Zones of Egypt, hailed the strong economic ties between Egypt and China, saying that the Egyptian government attaches great importance to the cooperation with China and is ready to attract more Chinese investment, especially in technology and engineering industries as well as home appliances, which will help the Egyptian economy to move up the value chain.
Haier Egypt Ecological Park is an important project as it will facilitate the transfer of home appliance manufacturing technology and create about 2,000 jobs in Egypt,
Arçelik celebrate laying the foundation stone for their first factory in Egypt.
Located in Cairo’s 10th of Ramadan Industrial Zone, the factory is projected to start manufacturing in Q4 of 2023 with an annual capacity of 1.5 million household appliances.
The state-of-the-art manufacturing site, with a total area of 114.000m2, will produce eco-friendly cookers and refrigerators in the first phase of production.
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