Expansion course in the Middle East
Steady investment by Egyptian plastics converter
In 1998, New Modern Plast Egypt started its activities within the family-run Modern Plast Group, which is active in plastics processing. This division of the company, one of four in the group, serves the plastic packaging sector and is now one of the leading processors in preform and closure production. We met Technical Director Khaled Elalfy and Sales Manager Amr Mahdy in the industrial area of New Cairo and took a closer look at the setup.
Meeting with New Modern Plast Company // September 5, 2024
We met:
Mr Khaled Elalfy, Technical Director
Mr Amr Mahdy, Sales Manager
Photo top: The Editourmobil in front of the company entrance with (from left to right) Khaled Elalfy, Kay Barton and Amr Mahdy
The company originally started 26 years ago in the city of Badr and moved 2022 to the current industrial area in New Cairo. The current Chairman Mohamed Ahmed, who holds a bachelor’s degree in business administration from Cairo University, is the founder of New Modern Plast and its affiliated companies and has 30 years of experience. Vice Chairman and CEO Dr Samah has been a passionate part of the plastics industry for 13 years and has been actively involved in decision making throughout her career. She has successfully restructured the company and introduced a system that, according to the company, has significantly increased both efficiency and productivity within the organisation. A success-driven medical doctor who graduated from Ain Shams University, she is currently studying for an MBA.
The facility covers a lot of space and several areas were being built on at the time of our interview visit. New Modern Plast has several production facilities located close to each other, separated by product area. There is even a technical training centre for schoolchildren to teach them about the world of plastics processing and thus lay the foundations for the potential skilled workers of tomorrow.
Over the past ten years, the company has continuously invested in expansion and technology, as they explained to us. “We started with a Husky HyPET with an annual output of 120 million preforms,” explained Khaled Elalfy. “We now have eleven Husky HyPET systems ranging between 300 and 400 t with 72 to 128 cavities, as well as a Netstal PETline. Our combined preform output totals 3 billion.” In addition to the portfolio 29/25 (14 types, 7.9 g-27.5 g), PCO1881 (14 types, 15.7 g-49 g), preforms for edible oil bottles (four types, 210 g-680 g) and large format containers (three types, 19 g-26 g), 29/25, 1881, 48 mm and 55 mm closures are also produced. “The cap production has been around since 2021,” explained Mr Mahdy, pointing to the two Sacmi CCM48SD during the tour. A Husky 300 t Hylectric is also in operation.
The company also manufactures racks for water gallons, as well as plastic pallets and transport crates. “All the plants together make up 45,000 m2 of space,” says Mr Elalfy. Apart from Egypt, the products are exported to Saudi Arabia, Libya, Yemen, Morocco, Kenya and the UAE. “Outside of our portfolio, we can also plan and create customised designs,” explained Khaled Elalfy. The preform part accounts for around 50% of turnover, with closures and other plastic products such as pallets each contributing 25%. In Egypt, customers include Nestlé, PepsiCo, Dasani and Coca-Cola, as well as the water brands Wapco, Hayat and Siwa, among others. Sufficient storage facilities with around 20 warehouses, which are strategically well distributed, should ensure problem-free supply, according to the team.
In Jeddah, Saudi Arabia, New Modern Plast has been operating a second production facility for several months, working with three Husky preform lines and one for closures. Another plant in Al-Kharj near Riyadh for the production of preforms on two Husky HyPET systems and closures on one Husky HyCAP system is currently being planned. “A new branch for us is the processing of rPET,” explained Khaled Elalfy. “Nestlé and Pepsi are our current customers, and we are currently in the approval process with Coca-Cola. The topic of rPET is still a nascent one in this country, but it is becoming increasingly important, which is why we are also tapping into this area.” He is referring to a US$25 million investment for the construction of a Starlinger recycling unit with a capacity of 15 t on an area of 50,000 m2, which is scheduled to start in 2025.
