Flexible packaging and solutions company UFlex’s aseptic liquid packaging business, Asepto, expects its newly-established manufacturing facility at Ain Sokhna, Egypt, to serve as a strategic gateway to six major international markets. The plant will reach full utilisation of its 12 billion-pack annual capacity by 2030.
The $126-million greenfield facility, located on the Gulf of Suez close to the Suez Canal, is currently undergoing customer trials, with commercial production likely to begin by end of the calendar year.
“The plant is expected to operate at around 30% utilisation in the first year, rising to 70% in the second year and reaching 100% by 2030,” said Ashwani Kumar Sharma, president and CEO of UFlex’s liquid packaging business, on Wednesday.
The 30-acre facility is Asepto’s second manufacturing location after its 72-acre facility in Sanand, Gujarat. Both plants have an installed annual capacity of 12 billion aseptic packs each, taking Asepto’s total capacity to 24 billion packs a year.
The difference in footprint reflects the higher degree of automation and integration built into the new facility, according to Sharma. The Ain Sokhna plant brings printing, inspection, extrusion lamination, slitting, material handling and final packaging into a single manufacturing operation, with equipment sourced from Germany, Austria, the Netherlands and Italy.
Asepto, established in 2017 and serving over 50 countries, is positioning Egypt as a single manufacturing node connecting Europe, the Commonwealth of Independent States (CIS), Africa, the Gulf Cooperation Council (GCC) and West Asia, Latin America and North America. The company estimates shipping times of about 10 days to Europe and the CIS, 5-20 days to Africa, 10 days to the GCC and West Asia, and around 30 days to Latin America and North America.
The company is also pointing to Egypt’s extensive network of free-trade agreements as an advantage for exports. These include preferential market access through the Common Market for Eastern and Southern Africa (COMESA), Greater Arab Free Trade Area (GAFTA) and the African Continental Free Trade Area (AfCFTA), as well as trade arrangements with markets covered by the Agadir Agreement, Turkey, MERCOSUR (Southern Common Market) and EFTA (European Free Trade Association).
“Egypt is in close proximity to the GCC, MENA and European markets. The total market size across these regions is $25-26 billion and is likely to double in approximately eight years. Growth in this region is fantastic. We also have excellent trade agreements that give us access to these markets from Egypt. So, it is the combination of trade deals and Egypt’s strategic location that makes it an exciting market. Even within Egypt, we can supply products within hours,” said Sharma.
The expansion comes as UFlex seeks to strengthen its position across the global packaging value chain. The company reported revenue of around $1.63 billion for the year ended March 31.
The correspondent was in Egypt at the invitation of UFlex.