MANUFACTURER OF THE MONTH- Once a month, Inside Industry looks at a manufacturer — whether locally bred or an international player with a manufacturing base here in Egypt. The monthly feature covers manufacturers in different industries to look at their success stories, the challenges they have faced as local manufacturers, and the path forward as Egypt looks to build a more robust local industry. This month, we spoke with Ümit Günel (LinkedIn), Regional Director of Turkish home appliance manufacturer Beko.

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Beko is one of the latest global manufacturers to invest in Egypt’s industrial landscape, entering the market in 2022 with a USD 100 mn greenfield investment. The company set up operations in Tenth of Ramadan, where it inaugurated a state-of-the-art factory this September in the presence of Prime Minister Moustafa Madbouly. The facility spans 114k sqm, with 70k sqm of closed production space, and has a production capacity of 1.5 mn home appliances annually — including refrigerators, ovens, and dishwashers. The factory is equipped with advanced production technologies, ensuring efficiency and quality for its products.

Beko aims to make Egypt its regional hub, serving the Middle East and Africa. The company is committed to leveraging Egypt’s strategic location and its skilled workforce to expand its footprint in regional markets. Our strategy is to export more than 60% of our production capacity to key markets across the Middle East, Africa, and Europe.

One of our primary goals is to ensure sustainable and environmentally friendly operations, and our new factory in Egypt reflects this commitment. The factory has been designed to meet LEED Gold standards, with all systems — including waste and energy management — fully compliant and ready for certification. While we are still in the process of obtaining the official license, this facility is set to become one of the first of its kind in Egypt at this scale of investment. These efforts align with Beko’s global recognition on the Dow Jones Sustainability Index and by Time Magazine as one of the top companies worldwide.

We are currently ramping up both local production and exports. At the moment, we employ 550 workers, but this number is set to grow. Once the factory reaches full capacity, we expect to provide a total of 2k direct and indirect jobs.

We are currently conducting feasibility studies for the second phase of our project, which includes plans to expand the facility by an additional 20k sqm and explore new product categories to add to our operations. This follows an initial USD 110 mn investment in the first phase — we are now fully utilizing the facility’s capacity and building toward long-term growth.

At full capacity, we’re targeting USD 250 mn in annual exports from Egypt, providing a significant boost to the local economy. Our vision is to reduce imports, increase exports, and bring in more foreign currency while supporting the growth of Egypt’s feeder industries. We aim to lead in the Middle East and Africa, and our investment in Egypt is key to achieving that goal.

We currently export to around 30 countries, with North Africa leading as our primary market, though our reach extends across a diverse geography. This wide market access is one of Egypt’s key advantages, thanks to its trade agreements that open doors to multiple regions. While we aim for exports to make up at least 60% of our total output, we are balancing this with local demand, which remains strong. However, our focus remains on growing the export side step by step to ensure a stable and sustainable business. At the same time, we are committed to investing in market development and supporting local feeder industries to further enhance our operations and competitiveness.

We hold a strong position in Europe, where our group commands around 25% market share, making the Eurozone a key focus area for our exports. From our facility in Egypt, which operates at European standards in quality and durability, we’ve already exported to major markets like France, Italy, and Spain. Our products, proudly made in Egypt, are competing successfully in these markets. We also have significant operations in Morocco and Algeria, and with our subsidiaries in the UAE and Saudi Arabia, we are well-positioned to expand further in these strategic markets.

In the past, our manufacturing operations relied heavily on imports, but that is changing. Thanks to steps taken by the government and the Central Bank of Egypt, we’ve seen significant improvements in accessing local supplies, especially over this year. This has allowed us to engage more with local feeding industries, which are now ramping up their production capabilities.

We don’t have a fixed target for localization — it’s an open-ended goal. Our focus is on localizing as much as possible, as it’s ultimately in our favor to source more from Egypt. While achieving 100% localization is the ideal, we recognize the realities of operating in a global business environment where cost competitiveness is key.

We chose the Egyptian market because of our familiarity with its culture and our confidence in managing risks within its economy. We made this decision with a long-term perspective, believing in the sustainability and growth potential of Egypt’s economy. Much of the current challenges stem from global factors, not solely domestic ones, and as long-term investors, we see these as opportunities rather than obstacles.

Manufacturers and exporters in Egypt face several challenges, including regulatory bureaucracy, limited availability of foreign currency, and delays at customs. These obstacles can complicate operations, but from the very beginning, we’ve seen strong support from the Egyptian government at all levels. Bodies like the Industrial Development Authority, the General Authority for Investment and Freezones, and Egyptian Commercial Services, alongside state banks, have been proactive in assisting and accelerating processes.

A major breakthrough for us was being granted the golden license, one of the first of its kind. Thanks to this support, we’ve been able to fast-track a large-scale investment that would typically take over two years and meet our production targets within a much shorter timeframe.

Egypt offers manufacturers and exporters a competitive edge with cost-effective labor, utilities, and proximity to key markets. Its strong logistics infrastructure ensures faster time-to-market, while a young, responsive talent pool, when properly trained, can deliver high productivity. Government incentives for localization and exports, combined with Egypt’s extensive free trade agreements make it a strategic hub for accessing diverse markets and driving regional and global trade.

Our products are competitive in international markets because of our commitment to innovation and quality. Beyond our new facility, we’ve invested in certified quality and durability labs, R&D centers, and collaborations with top Egyptian universities to develop software, hardware, and innovative platforms locally.

Your top industrial development stories for the week:

• Polish furniture industrial complex could be ready by 2026: Polish furniture manufacturer Padma Art is set to begin production in its EUR 70 mn furniture production complex in New Alamein by 1Q 2026. (Al Borsa)
• Egyptian industrial zone in Benghazi set to launch in 2025: The Libyan government has allocated 1 mn sqm for an Egyptian industrial zone in Benghazi, with plans to hand over the land to investors by early 2025. The zone will host energy-intensive industries, including engineering, metal, and chemical factories, benefiting from Libya’s low electricity and gas prices to boost export competitiveness in West Africa. (Al Borsa)