Arla Strengthens North African Presence Through Egyptian JV
21 May 2015 --- Arla Foods and the Egypt-based dairy company Juhayna have agreed to form a joint venture which will sell Arla’s products across Egypt.
“It is a very good match for both parties. Juhayna has a nationwide distribution network, and we are not competing within the same product categories. Together we now get a broader product portfolio, which strengthens the business of both parties,” says Arla’s senior director of the Middle East & Africa, Rasmus Malmbak Kjeldsen.
Juhayna owns 51 per cent of the new joint venture company, while Arla owns 49 per cent. However, Arla will be in charge of the daily management of the joint venture. The ambition is for the company to also start up local production in Egypt.
“We have built our entire business in the Middle East through cooperation with local partners. In Arla we excel at making joint ventures succeed, and that is a business model we will use to establish ourselves in other African markets as well,” says Rasmus Malmbak Kjeldsen.
He estimates that the new joint ventures company will have 40-50 employees, and he predicts that the work force will exceed 100 employees within the next year or two.
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