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Otsuka’s USD 40M Facility Expands Egypt’s Pharma Industry

Otsuka’s USD 40M Facility Expands Egypt’s Pharma Industry
Image Source: CNBC Arabia
  • Initiated construction of a USD 40M health supplement plant in Egypt’s 10th of Ramadan City.
  • It targets rising Middle Eastern demand for high-quality medical solutions and health supplements.
  • The facility contributes to government prioritization of pharmaceutical projects.

Otsuka’s Strategic Move into the Middle Eastern Market

Japanese pharmaceutical leader Otsuka has broken ground on its first health supplement manufacturing facility in the Middle East, located in Egypt’s 10th of Ramadan City.

With an investment of USD 40M, the plant will focus on producing health supplements to cater to Egypt and the surrounding MENA region.

Egypt’s Minister of Investment, Ahmed Samir, underscored the government’s enthusiasm for this significant addition to Egypt’s pharmaceutical landscape. He stated it as “a landmark investment in healthcare innovation.”

Boosting Egypt’s Health Sector and Job Market

Otsuka’s project is set to provide substantial benefits for Egypt’s health sector and workforce. 

With production capacity projected at over 1.5 million units annually, the facility aims to meet both local and regional demand.

Egypt’s Ministry of Investment has prioritized pharmaceutical projects like Otsuka’s, because it aligns with the nation’s Vision 2030 goals.

More specifically, Otsuka’s project contributes to expanding foreign direct investment in healthcare and manufacturing.

Furthermore, the new plant is expected to create numerous jobs, contributing to economic development and talent growth in advanced manufacturing and pharmaceuticals.

Technological Excellence and Market Entry Strategy

In its approach, Otsuka plans to leverage the latest technology to ensure quality production standards to meet international health regulations.

The strategic partnership with Egypt’s government will streamline the construction and certification processes enabling the plant to start production by 2026.

Additionally, Otsuka’s Egypt-based facility will serve as a pivotal distribution center for delivering health solutions across the MENA region.

Alignment with Regional Market Trends

Otsuka’s investment aligns with the broader market trend in the Middle East and North Africa toward health and wellness products.

As the region’s pharmaceutical market is anticipated to grow at an annual rate of 9.4%, the facility strengthens Otsuka’s market positioning in MENA.

This investment highlights Egypt’s role as a strategic hub in the regional healthcare sector and reinforces Otsuka’s ability to capture and serve growing demand efficiently.

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