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Alexandria Oil and Soap Company, an affiliate of the Holding Company for Food Industries under the Egyptian Ministry of Supply and Internal Trade, intends to achieve a major leap in its financial and operational performance during the current fiscal year. The company is targeting total sales of EGP 6.2 billion, compared to the EGP 5.8 billion recorded in the previous fiscal year. These growing targets are backed by an integrated action plan focused on boosting productivity, expanding the export footprint in international markets, and upgrading the technical efficiency of operational lines to enhance competitiveness locally and globally.
In this context, Hamed Abdel Salam, Chairman of Alexandria Oil and Soap Company, stated that the management has established a clear vision to drive sustainable growth rates through increasing export revenues, modernizing existing production units, and optimizing daily operations. These directions support the aspirations of the Holding Company for Food Industries aimed at maximizing value addition and delivering products with the highest quality standards.
International Expansion Plans and Reaching EGP 83.5 Million in ExportsAbdel Salam revealed that the company aims to raise its export value to EGP 83.5 million during the current fiscal year, achieving noticeable growth compared to around EGP 77 million last year, thereby surpassing the previously set target of EGP 60 million. He explained that the company's export compass will focus primarily on penetrating and expanding within the Saudi Arabian market as a pivotal pillar in the coming period. This will run parallel to strengthening its presence and market share in traditional markets it currently exports to, such as Libya, Lebanon, Turkey, and Ireland. The company continues to explore new international outlets to increase foreign currency inflows and reduce absolute reliance on domestic market sales.
Injecting EGP 7 Million in Investments to Develop Factories and EquipmentOn the infrastructure and production lines front, the company has allocated an investment budget of EGP 7 million for the current fiscal year, entirely directed toward upgrading and modernizing several production units. This ensures improved operational reliability and reduces overall production costs. The ongoing development works include the rehabilitation of the silicate autoclave and upgrading detergent production lines and equipment. Furthermore, efforts include rehabilitating the crude oil extraction unit from oilseeds, particularly cottonseed, contributing to higher pressing and extraction efficiency and maximizing the utilization of local agricultural raw materials. To support the internal transport system and facilitate logistical operations, the company intends to introduce a new loader into service to accelerate the handling of raw materials and finished products within factory yards, positively reflecting on operational speed and efficiency.
Production Capacities and Meeting Subsidized Supply NeedsThe company's Chairman emphasized that the total production capacity of the oil factories amounts to approximately 120,000 tons annually. This capacity is fully dedicated to producing subsidized cooking oil for the food subsidy system, underscoring the company’s strategic national role in securing essential commodities for citizens. Additionally, the company owns detergent factories with a production capacity of up to 10,000 tons per year, and feed production factories with a capacity of about 37,000 tons per year. This grants the company a highly diversified production base that supports its market flexibility and increases value-added returns.
Hamed Abdel Salam concluded by pointing out that development programs are continuing non-stop to raise performance efficiency, improve product quality, and optimally utilize available capacities, aligning precisely with the comprehensive vision of the Holding Company for Food Industries to enable its subsidiaries to compete strongly and achieve robust, sustainable growth.
Source: Commodity Markets