French multinational cosmetics company L'Oréal has announced plans to invest 240 million Egyptian pounds (EGP) in expanding its factory in the 10th of Ramadan City, Egypt. The investment, set to be implemented in 2026, aims to enhance the factory's production capacity and export capabilities. The announcement was made during a visit by a high-level government delegation, including Egypt's Minister of Industry, Khaled Hashem, Minister of Investment and Foreign Trade, Dr. Mohamed Farid, and French Ambassador to Egypt, Eric Chevallier.
The L'Oréal factory in Egypt specializes in producing hair and skin care products, as well as hair dyes, for the consumer goods sector. The new investment will enable the factory to increase its production capacity and improve operational efficiency. This expansion is expected to help meet growing demand in Egypt and the region, while also facilitating exports to new markets. As L'Oréal's sole manufacturing site in the Middle East and North Africa (MENA) region, this investment is a strategic move to develop the company's industrial capabilities in Egypt.
The Egyptian government has been actively working to attract investments and support the growth of the country's industrial sector. The visit by the government delegation to the L'Oréal factory highlights the importance of the cosmetics industry in Egypt's economy. Minister of Industry, Khaled Hashem, emphasized the potential of the cosmetics and pharmaceutical sectors to boost Egypt's exports to regional markets. He also praised L'Oréal's efforts in transferring technology and expertise to its Egyptian factory.
L'Oréal's Egyptian factory has been in operation for several years, producing 442 million units over the past five years. The factory exports 85% of its production to 20 countries in the MENA region. The company's commitment to sustainability is evident in its operations, with the factory relying entirely on renewable energy and implementing a water recycling system. L'Oréal Egypt has also achieved 100% recycling of plastic used in its hair care product packaging since 2019.
The Egyptian government is focused on maximizing the economic impact of investments by increasing local content and promoting linkages between global companies and Egyptian suppliers. Minister of Investment and Foreign Trade, Dr. Mohamed Farid, noted that the new expansion of the L'Oréal factory reflects the confidence of investors in Egypt's industrial sector. The investment is expected to contribute to the growth of Egypt's economy and reinforce the country's position as a regional hub for manufacturing and exports.
French Ambassador to Egypt, Eric Chevallier, highlighted L'Oréal's role as a model for French companies contributing to Egypt's industrial development. He emphasized the significance of L'Oréal's long-term presence in Egypt, its continuous investments, and its commitment to local manufacturing. The ambassador also noted that the new investment demonstrates L'Oréal's confidence in Egypt's market potential and the strength of the economic partnership between France and Egypt.
L'Oréal Egypt's Managing Director, Mohamed Arabi, stated that the investment reflects the company's trust in Egypt's dynamic economy and its industrial potential. The expansion will enable L'Oréal to significantly increase its production capacity, enhance its regional presence, and accelerate its efforts in sustainable manufacturing. A recent study by French consulting firm Asterès found that L'Oréal supports over 22,000 direct and indirect job opportunities in Egypt and has impacted more than 117,000 people through its community programs.
Key points
- L'Oréal's 240 million EGP investment aims to enhance production capacity and export capabilities at its Egyptian factory.
- The factory, located in the 10th of Ramadan City, specializes in producing hair and skin care products, as well as hair dyes.
- The expansion is expected to contribute to Egypt's economic growth and reinforce the country's position as a regional hub for manufacturing and exports.
