The investment is part of UFlex’s backward integration strategy to strengthen its production capabilities, as well as cater to the growing demand in Egypt, the Middle East, Europe and Africa.
Jan 2, 2025
UFlex, one of the end-to-end flexible packaging solutions companies of the country, serving as a one-stop shop for all flexible packaging needs, announced a capex of USD 200 million to expand its operations in Egypt.
As per the company, the investment is part of UFlex’s backward integration strategy to strengthen its production capabilities, as well as cater to the growing demand in Egypt, the Middle East, Europe and Africa.
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The projects include a PET chips facility worth USD 70 million, which will supply raw materials for BOPET films, widely used in packaging. This facility will serve Egypt, the Middle East, and Europe, with any surplus used to meet demand in the Americas.
Mr. Rajesh Bhatia, Group President and CFO of UFlex, said the project is set for completion by the end of the current fiscal year.
The second major project involves an aseptic packaging plant having annual production capacity of 12 billion packs. This facility will cater to Egypt’s domestic market, as well as growing demands in Africa and the Middle East.
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Entailing an investment of USD 125-130 million, the facility is expected to become operational by the end of FY26. As per Mr. Bhatia, the benefits of manufacturing in Egypt included duty-free exports to Europe and favourable costs for labour & energy. UFlex is targeting a 15 percent revenue growth in FY25, he added.
