CAIRO: Procter & Gamble plans to invest over LE 780 million ($140 million) over the next three years in expanding its Egypt operations, officials said.
Speaking at the groundbreaking ceremony of P&G’s new diaper manufacturing plant in Sixth of October City, Laurent Philippe, Central and Eastern Europe, Middle East and Africa group president, said, “P&G selected 11 priority countries for future expansion, and it is the company’s objective to turn Egypt into a center of excellence for the entire Middle East and North Africa region.”
Philippe, who has been with the firm for over 30 years, added, “This is new plant is a reflection of a strategic decision that fits into P&G’s broader framework, which seeks to place Egypt and other emerging markets at the heart of the company’s regional operations.”
Once completed in 2020, the plant, which will specialize in diaper production, is projected to be amongst the three largest P&G plants worldwide, making it a regional hub for the company’s production operations.
At twice the size of current P&G’s current plant, also situated in Sixth of October, it will sprawl over 256,000 square meters and increase exports from Egypt, more specifically, a 50 percent in diapers exported out of Egypt.
Of its production, 60 percent will go to foreign markets concentrated in Africa, Asia and Europe, while 40 percent will cater to local demand.
According to a company statement, this places P&G as Egypt’s 11th largest exporter.
P&G chose to further expand its operations in Egypt, as Philippe explained, because “historically, Egypt has proven to be a huge business success for foreign firms, which is in thanks to significant support from the government.”
“The Egyptian government has been very supportive of foreign direct investment (FDI), it has streamlined rules and regulations to facilitate a more open private sector environment, as well as providing a number of incentives for driving exports, which have all been instrumental in making firms more competitive,” Philippe affirmed.
Regarding job creation, the plant will employ 560 people, but as the group president pointed out: “For every one job that P&G creates directly, seven to eight jobs are created either upstream or downstream.”
Currently the company employs 1,200 individuals, of which 99 percent are Egyptian.
Philippe was keen to underscore that in P&Gs local leadership positions, only four are currently held by non-Egyptians, with the rest being held by Egyptians, and furthermore, 42 Egyptians hold positions of key importance not just in the region, but worldwide.
“This is a testimony to the quality of the skills and knowledge that Egyptians bring to P&G,” he said.
Mohamed Sultan, general manager of P&G Egypt, said, “When P&G began its operations in the country, total investments stood at LE 12 million, with just 50 employees, which in reality was a quite modest beginning.”
He added that in 1986, when P&G entered Egypt, it only produced two products, but now that number has reached 15.
Moreover, he indicated that thanks to P&G’s operations in Egypt, the company successfully attracted five raw material producers to the local market, which led to investments of up to LE 500 million.
The United States ambassador to Egypt Margaret Scobey, who also spoke at the event, highlighted that the US embassy has been making serious efforts to promote trade between both countries by broadening their economic relationship.
“The US is the single number one destination for Egyptian products, representing 33 percent of its export products, and P&G’s expansion reflects a desire by both the Egyptian and US governments to increase foreign direct investment in Egypt,” she indicated.
