EGYPT – Chipsy Food Industries, a subsidiary of PepsiCo Egypt Group, has opened a new US$20 million production line inside the Chipsy factory with a production capacity of 25,000 tonnes as part of its expansion strategy in the Sixth of October City, Egypt.

Founded in 1982, Chipsy for Food Industries holds approximately 60% market share in the snack segment in Egypt and exports its products to 11 countries in Africa, Asia, and the Middle East including Saudi Arabia, Kuwait, and Lebanon.

According to Mohamed Shelbaya, president of PepsiCo North Africa region, the move is part of the American food giant’s expansion strategy and the new investment will facilitate the company’s goal of diversifying in particular into corn and potato-based snacks.

190 new jobs for Egyptians

The 110,000 sqm Chipsy Company for Food Industries plant includes nine production lines producing potato chips, tortilla chips, and corn-derived products.

Earlier in the week, Prime Minister Moustafa Madbouli inspected the new production line and stressed the government’s support for expanding the factory’s activities, boosting production, and creating jobs.

During the visit, Shelbaya briefed the premier on the factory’s use of modern technology and the adoption of quality monitoring systems.

In addition, the investment will contribute to the Egyptian economic drive by employing 45 full-time employees and 145 temporary workers seven days a week,” he said.

Shelbaya pointed out that PepsiCo has had a strong relationship with the Egyptian market for more than 70 years, noting that its location and growing population make the country an attractive market for investors.

100% local sourcing

He said the company employs more than 14,000 workers (permanent and temporary) across nine factories in Egypt and 32 distribution centers. The company also owns a 4,600-vehicle-strong distribution fleet, one of the largest in Egypt,

The move comes at a time when the company has enough potato seeds for manufacturing after seven years of local production of potato seeds from an agricultural specialty program launched in 2016.

Through this program, Chipsy has been able to provide locally cultivated seeds to the Egyptian market instead of exporting potato seeds from foreign countries.

In 2017, the project helped the company to provide 70% of its seeds from local sources and 100% of Chipsy’s potatoes are now locally sourced.

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