Beko Egypt for home appliances, a subsidiary of Arçelik, celebrated laying the foundation stone for its first factory in Egypt at the 10th of Ramadan Industrial Zone on the 7th of December, 2022. The allocated land is a total area of 114,000 m2.
Many high-level government officials attended the event alongside Counselor Mohamed AbdelWahab, GAFI CEO, Minister Plenipotentiary Mr. Mohamed ElSayed, Director of the European affairs & Turkey Department at ECS, Mr. Mohamed Youssef, Head of Investment Promotion at GAFI, and Dr. Ahlam Farouk, Head of the Central Administration for the Protection and Improvement of Industrial Environment and Energy at Ministry of Environment, in addition to H.E. Salih Mutlu Şen, Turkey’s Ambassador to Egypt, Mr. Fatih Kemal Ebiçlioğlu, Koç Holding, Consumer Durables Group President, Hakan Bulgurlu, Arçelik CEOand Ümit Günel, Beko Egypt General Manager.
Driving Industrial Localization
The state-of-the-art manufacturing site is on the heels of fruitful discussions between the Egyptian government and Arçelik, a global household appliances manufacturer and a subsidiary of Koç Holding. Both parties had come together to explore investment opportunities. Moreover, means increasing local employment and creating value for local industries and communities
The $100 Million investment is a noteworthy and significant milestone for the regional economy. It is expected to boost the economy by creating more than 2,000 jobs and transferring technical know-hows. Moreover, the new factory will develop local supplier ecosystems to create sustainable value for all industries. It will further support the government’s long-term strategy to drive industrial localization. In addition to establishing Egypt as a significant production and export hub to overseas markets.
Egypt’s Green Economy
The plant is expected to begin operations by Q4 2023 and will manufacture an annual capacity of 1.5 million household appliances. As a result, more than 60% will be planned for export to Europe, the Middle East & Africa as “Made in Egypt”, further stressing on the local significance this project will bring. The first phase of the investment will focus on producing eco-friendly cookers and refrigerators. The “Zero Waste” factory will also support Egypt’s vision 2030 for a green economy and the use of cutting-edge technologies. This includes rooftop solar panels and renewable energy, as it works towards meeting local market needs and supporting government efforts to achieve its SDGs.
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Koç Holding Consumer Durables Group President, Fatih Kemal Ebiçlioğlu stated “We strongly believe in Egypt’s potential. The pace of growth is promising, and Egypt plays a vital role in our strategy. We are confident that this strategic investment will reinforce our long-standing commitment. We are highly motivated to use our global expertise, scale, and knowledge to make this investment a remarkable success.”
Additionally, Arçelik CEO Hakan Bulgurlu commented “As Europe’s leading brand, Beko will replicate its achievements in Egypt. Sustainability is incorporated as an essential strategy in every facet of our business; from sourcing our materials to our product design and recycling programs.”
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Lastly, Beko Egypt General Manager Ümit Günel stated, “Today, we are witnessing a new milestone and opening a new gateway with the Beko factory in Egypt. This journey is just the beginning. We are currently studying the extension of the factory with new product categories. Also, we have another investment project which we call a retail factory. We will open 250 new showrooms and 50 service centers across Egypt and deliver world-class quality to our customers. This project will add new employment opportunities and create value for the Egyptian economy. We proudly received the market leadership position in the dishwasher category this year. We aim to continue our leadership and work towards becoming the top 3 home appliances brands in Egypt.”
The new plant will be a revolutionary milestone in Egypt’s economy. It will implement sustainability on a major scale in Egypt. Its aim is to normalize the talk on more sustainable and noteworthy solutions to help the environment.