United Plastic plans Egypt factory

Move aims to reduce production costs

United Plastic Manufacturing (UPM), manufacturer of disposable plastic dishes and utensils, aims to open a new factory in Cairo, Egypt.

Jihad Salame, major shareholder and General Manager of UPM, said this move comes in response to high production costs in the local market, including the energy and transport expenditures. “The cost of one kilowatt of energy locally reaches $0.35, but it does not exceed $0.06 in Egypt.”

Salame said costs in the Egyptian facility will be 17 percent lower than in UPM’s local factory in Ajaltoun. “Although our items will be sold at lower prices, we will benefit from a huge market.”

The factory will be located in Cairo’s El Obour industrial city, which is still under construction. It will stretch over an area of 4,000 square meters. The cost of investment will reach $2 million including construction and equipment.

UPM’s production is valued at about $1.8 million yearly. It exports its goods to Jordan, Iraq, Cyprus, and – to a lesser degree – some African countries.