Daily News Egypt

Oil Tec for Oils & Detergents to export 17,000 tonnes in 2017 - Daily News Egypt

Advertising Area




Advertising Area




Oil Tec for Oils & Detergents to export 17,000 tonnes in 2017

We target expansion by exporting to Arab and COMESA countries, says Morgan


Oil Tec for Oils & Detergents plans to export 17,000 tonnes of edible oils during 2017, up from 11,000 tonnes in 2016—an increase of 50%—as a result of the pound flotation and capacity increase.

Head of exports at the company, Omnia Morgan, said that the company checks a growth pace of an average of 50% per year, thanks to the modernisation of its production lines.

She added that the company targets more exports to the Arab nations and to the common market for eastern and southern Africa (COMESA) countries, such as Sudan, Djibouti, Malawi, Zambia, and Zimbabwe, as well as further countries in the Persian Gulf by participating in the Gulfood Exhibition in Dubai.

Moreover, Morgan said that the company is now exporting to several African markets, including Libya, Kenya, Madagascar, Rwanda, and Mauritius, along with other non-African ones, such as Kuwait, Iraq, Qatar, and Palestine.

She added that the company has doubled the volume of exports during the last year, where it exported some 11,000 tonnes, up from 5,500 tonnes in 2015.

She pointed out that the company will double its production capacity by the end of 2018 to reach 30,000 tonnes per year, compared to 17,000 this year, by adding two production lines.

She explained that Oil Tec for Oils & Detergents has invested €2m in 2016 to establish a new factory in Sadat City for the production of fatty acids.

Morgan noted that the trial operation and production of the new plant began in January, adding that part of its production will be earmarked for export.

She said that the company’s production capacity of fatty acids amounts to 240 tonnes a year, and  she noted that it exported the first two shipments of production earlier this year.

Morgan added that the company relies on exports in order to provide foreign currency to boost the value of sales and offset the production cost surge after the depreciation of the Egyptian pound against the US dollar.

She explained that the flotation of the pound had a positive impact on the company over the past four months, which contributed to signing new deals in Arab and African countries, as the company’s competitiveness abroad grew.

Furthermore, Morgan said that the company exports 70% of its production and keeps the remainder for the domestic market, with plans to boost exports up to 85% to counter the production cost hike.

She added that the depreciation of the currency against the dollar from EGP 9 to EGP 18 raised production costs.

She pointed out that the company has to keep 15-30% of production to the domestic market as it has to maintain the reputation of its trademarks in Egypt, including royal oil.

She explained that the company has abilities for refining, packing, and mixing all kinds of edible oils in different sizes and brands, and she hopes to grow its market share and develop its brands in order to spread in the domestic and international markets.

She said that the company produces four types of edible oils—soybean, sunflower, corn, and mix—as well as other products of fat and butter.

The company also produces two types of detergent for toilet soap and washing machines, which come in different sizes, colours, and smells, as well as crude glycerol for creams and many natural mixtures.

Morgan said the company produces the polyethylene terephthalate (PET) plastic bottles for packaging oils and some of the detergent packaging.

She noted that the plastic bottles factory is in the same place of packaging, which is in line with safety guidelines and specifications.

The company cooperates with the Ministry of Social Solidarity to market its production in Egypt, as well as supermarket chains such as Kheir Zaman, along with marketing managers spanning 11 Arab and African countries.

Oil Tec for Oils & Detergents was founded in 1999 as an Egyptian shareholding company.

Advertising Area



https://dailyfeed.dailynewsegypt.com/2017/03/15/618644/
Breaking News

No current breaking news

Receive our daily newsletter
Subscribe