In Egypt, SIG is launching ‘Recycle for Good’, an innovative recycling initiative to enable direct household and food service industry collection of used aseptic carton packs through tech-based solutions. This initiative involving SIG and Tagaddod is the first of its kind in the Egyptian market.
Consumers can use a mobile app to arrange for their used cartons to be collected from their homes or workplace in exchange for rewards. The project aims to incentivise recycling of used beverage cartons, ensuring high-value resources remain in circulation while benefitting local communities.
SIG is working with Tagaddod on this project. They are leading the collection of the cartons. Tagaddod is the first company in Egypt to enable direct household and food service industry waste collection through tech-based solutions. Its app allows consumers and businesses in the food service industry to arrange collection of their used beverage cartons in exchange for rewards. The initiative uses Tagaddod’s existing logistics network, and household brand Green Pan to collect the cartons.
Recycling SIG carton packs keeps high-quality renewable materials in circulation for longer. All the materials used to make aseptic carton packs – paperboard, aluminium and polyethylene – can be recycled as valuable resources that can be used to create new products.
Only around 60% of the waste Egypt generates annually is collected currently, and less than 20% of this is properly disposed of or recycled. With no segregation of waste at household level, there is a huge need for collection initiatives such as this one.
SIG is committed to partnering with others to increase the collection and recycling of used beverage cartons, supporting the shift towards a circular economy. Recycling of packaging is an industrywide issue, and SIG partners on this with many different stakeholders, including industry peers, customers, consumers, and national and local governments. As recycling rates, regulations and infrastructure vary widely in different countries and municipalities, SIG take a tailored approach through local roadmaps in priority countries.
Following its announcement on 12 August 2021, Coca-Cola HBC AG (“Coca-Cola HBC”) announced the completion of the acquisition by its wholly-owned subsidiary, Coca-Cola HBC Holdings BV (“CCH Holdings”), of approximately 52.7 % of Coca-Cola Bottling Company of Egypt S.A.E. (“CCBCE”) from MAC Beverages Limited (“MBL”) and certain of its affiliated parties for cash consideration of US$304 million, subject to certain balance sheet adjustments. An additional earnout amount may be payable based on CCBCE’s financial performance in 2021. Mr. Abdul Galil Besher, the current executive chairman of CCBCE, will remain as non-executive chairman of CCBCE. The transaction with MBL also involves the potential acquisition by CCH Holdings, at the same price per share to be paid to MBL, of another approximately 2.8 % stake from certain other minority shareholders pursuant to agreements to be entered into in due course.
In addition, a convertible loan issued to a wholly-owned affiliate of The Coca-Cola Company (the “TCCC Seller”) by CCBCE, convertible into new CCBCE shares, has been transferred to CCH Holdings for a cash consideration of approximately US$22 million (which is equal to its outstanding principal amount and unpaid interest).
Completion of the acquisition by CCH Holdings of approximately 42 % of CCBCE from the TCCC Seller, also announced on 12 August 2021, is expected to occur later this month, bringing CCH Holdings’ total ownership in CCBCE to 94.7 %.
The acquisition gives Coca-Cola HBC access to the second-largest non-alcoholic ready-to-drink (“NARTD”) market in Africa by volume, building on existing scale in Africa and increasing Coca-Cola HBC’s exposure to high growth geographies. There is a significant opportunity to leverage Coca-Cola HBC’s proven route-to-market capabilities and 70 years of experience operating in emerging markets to increase penetration of The Coca-Cola Company’s brand portfolio and drive category leadership.
Symrise has inaugurated its Creative Center in Egypt on November 26, 2019. The subsidiary in the outskirts of Cairo comprises modern development and application laboratories for the categories Beverages, Confectionery, Dairy, Culinary and Snacks. Dirk Bennwitz, President Flavor EAME at Symrise, officially opened the new facilities. They meet the company’s global technology and development standards and are intended to strengthen the company’s reach in the AME region and its collaboration with strategic customers. Partners, customers and guests attended the ceremony.
Symrise has equipped its development and application laboratories with state-of-the-art technology. Within the Creative Center, employees will develop customized product solutions and applications and adapt existing products for the market. Compared to its facilities so far, the new creative center offers a number of advantages. Modern consumer and market analysis and quality assurance procedures guarantee authentic and relevant products for customers and consumers in the region.
“By investing in the new Creative Center, our strong team of food technologists and flavorists can make a significant contribution to the growth in the region in the future,” says Dirk Bennwitz, President Flavor EAME at Symrise. “We are convinced of the strategy, because our location in Cairo offers us proximity to customers and markets in Africa and the Middle East. In the future, we will be able to better serve demand in the region and optimally align our business with our customers, thus contributing to the company’s growth.”
Customers benefit from tailor-made developments
In the future, the Symrise team will have access to all the technologies and innovations available in the Group in the Creative Center. This will make it easier to meet customer demand. In addition, customers benefit from knowledge of the region and the increased use of local raw materials. This helps to meet the diverse wishes of consumers. Another advantage is that Symrise can work with its customers in a time- and cost-efficient manner.
“We use a wide range of manufacturing technologies in Egypt to supply all of Africa and the Middle East,” says Ibrahim Wagdy, responsible Managing Director of Symrise in Egypt. “We are now expanding these capacities with our modernized site thereby increasing the attractiveness for our customers in the region.“
Egypt is an important location for Symrise. On the one hand, because the country’s location in the AME region makes it easy to exchange information with customers from Africa and the Middle East. On the other hand, the industrial and agricultural infrastructure provides valuable advantages for the production and development of flavors for the local market.
Huhtamaki inaugurates its new, state-of-the-art flexible packaging unit in Egypt today. The investment marks the company’s entry into manufacturing flexible packaging in Africa.
The greenfield is located in the greater Cairo area and will serve Huhtamaki’s flexible packaging customers in Egypt as well as export its products into other African countries and Europe. The manufacturing unit is built on a land area of almost 37,000 square meters, with ample space for future expansion. Production has started this spring and the facility is expected to employ approximately 250 employees.
“The Egyptian market is sizeable, and with the rapid population growth in Africa we expect future growth opportunities both for us and our customers. Until now we have served flexible packaging customers in Egypt from our units in the United Arab Emirates and India. With the new plant we can offer our current and new customers – both in Africa and Europe – the same top quality with shorter lead times,” says Olli Koponen, EVP Flexible Packaging.
The new manufacturing unit is owned and operated as a joint venture of which Huhtamaki owns 75 %. The remaining 25 % is owned by Mr. Ayman Korra, who has been Huhtamaki’s joint venture partner in the Egyptian fiber packaging business since 2003. The current investment, including land purchase, facility construction and machinery, is expected to be approx. EUR 23 million with Huhtamaki share at approx. EUR 17 million.
About Huhtamaki:
Huhtamaki is a global specialist in packaging for food and drink. With our network of 78 manufacturing units and additional 24 sales only offices in altogether 34 countries, we’re well placed to support our customers’ growth wherever they operate. Mastering three distinctive packaging technologies, approximately 17,700 employees develop and make packaging that helps great products reach more people, more easily. In 2018, our net sales totaled EUR 3.1 billion. The Group has its head office in Espoo, Finland and the parent company Huhtamäki Oyj is listed on Nasdaq Helsinki Ltd.
