The Arabian Food Industries Company – Domty has signed with the American company AMF Bakery Systems, two contracts to supply the former’s fourth production line of baked food and the first line of croissants, with a total investment of €2.5m.
Mohamed El-Damaty, CEO of Domty, commented, “We were able to overcome the difficult time/circumstances that occurred in the first half of 2021. The company is ready to expand with full force. We are producing with a capacity utilization rate of 90% of the three bakery production lines and we are expecting to reach the maximum capacity utilization in the bakery segment with the start of the academic year of schools and universities.”
“In addition to the expansion of sandwich production through the fourth line, the company will start to engage in the croissants and pies market. We will enter this market with a different quality hence, we will remain in the high tier price segment by offering short shelf life, high quality products only, we believe our edge with our consumer is our high quality short shelf life products which we will adhere to in the bakery market,” he added
El-Damaty pointed out that the new lines will be operating by mid-2022. The company will discuss ways of financing, whether from its own resources or through bank facilities. The company is also negotiating to expand its juice factory capacity.
“We are expecting to reach an agreement soon with Tetra Pak, as with the launch of the milk plus the increase of juice sales, we have reached the maximum capacity utilization of our manufacturing facility consequently we are facing obstacles to reach the optimal utilization of the filling capacities, which is what we are facing,” he said.
Domty plans to invest in its juice facility to enter the summer of 2022 with full force.
The company also believes that it will be taking actual steps to establish a third factory for the company, as the cheese category will also need to increase its production capacities if the partnership with FrieslandCampina succeeds.
Moreover, the company expects an improvement in raw materials prices by the beginning of next year.