Jotun Egypt to Invest EGP 2bn in 2027 for Production Capacity Expansion

Jotun Egypt is set to invest over EGP 2bn in new projects in 2027, aiming to expand its production capacity and upgrade its manufacturing capabilities. This move is part of the company's strategy to strengthen Egypt's position as a regional manufacturing and export hub. According to Ibrahim Alshami, Managing Director of Jotun Egypt, the company also plans to expand its exports and enter new international markets.

The company's exports have seen significant growth, increasing by more than 100% during the current year compared to the same period last year. Jotun Egypt has entered new markets, including Indonesia, in addition to existing destinations such as the United States, Libya, and Kenya. Exports now account for more than 10% of the company's total production, up from approximately 4% previously.

Jotun Egypt's factory in 10th of Ramadan City represents a major part of its manufacturing operations in Egypt, with investments estimated at around $100m and an annual production capacity exceeding 72 million litres. The company's operations serve the decorative, protective, and marine coatings sectors, supported by a nationwide network of more than 600 Jotun Multicolor Centres.

The company relies on self-financing to implement its expansion plans while seeking to increase the local content of its products, which currently exceeds 50%. Jotun Egypt is also working to improve operational efficiency and address rising raw material and energy costs. This approach aligns with Egypt's industrial development ambitions under its 2030 Industrial Strategy.

Jotun Group President and CEO Morten Fon emphasized the strategic importance of Egypt within the group's regional footprint, given its economic scale, industrial base, and position as a key market connecting Africa and the Middle East. As Jotun marks its 100th anniversary globally, Fon reaffirmed the company's commitment to local manufacturing, investment, and strengthening production capabilities.

Jotun Egypt has steadily expanded its operations in Egypt over the past 40 years, serving several industries through its decorative, protective, and marine coatings businesses. The company combines its international expertise with local manufacturing capabilities to develop solutions tailored to the needs of the Egyptian market. Its factory occupies a 94,000-square-metre site in the Zona Franca industrial zone in 10th of Ramadan City.

Jotun Egypt's expansion plans align with Egypt's industrial development ambitions, particularly efforts to boost domestic manufacturing, reduce dependence on imports, and strengthen the country's industrial and export base. The company has also introduced local production of SteelMaster, its passive fire protection coating for structural steel, providing technical guidance and engineering support to customers seeking to meet fire safety requirements for buildings and infrastructure.

Key points

• Jotun Egypt plans to invest EGP 2bn in 2027 to expand production capacity and upgrade manufacturing.
• The company's exports have grown by over 100% this year, with a focus on expanding into new international markets.
• Jotun Egypt aims to increase local content of its products and improve operational efficiency.