Juhayna Food Industries, one of Egypt’s largest dairy product and juice makers, and Denmark’s Arla Foods have signed Tuesday evening a contract to establish their new joint venture, ARJU.
The joint venture is with issued capital worth 200 million Egyptian pounds (US$25,5 million).
Juhayna owns 51 percent of the new joint venture company, while Arla owns 49 percent. However, Arla will be in charge of the daily management of the joint venture.
From his part, Safwat Sabet – Chairman of Juhayna – said his company and Arla intend to boost the joint venture’s capital to 500 million pounds in the coming period.
ARJU is expected to start sales in Egypt in October this year, Sabet added.
Furthermore, Juhayna’s chairman said the new JV is set to initially create around 100 direct job opportunities in addition to hundreds indirectly.
Juhayna and Arla aim to generate €100 million (US$110.2 million) in revenues from the new JV by 2020, Sabet said.
The venture, ARJU Food Industries, will expand Juhayna’s product portfolio to include cheese, butter and infant formula.