Egyptian cheese company Arabian Food Industries (Domty) has signed an agreement to acquire a bakery line from AMF, a US-based manufacturer of bakery equipment.
Domty noted that the installation of the line will produce 400 thousand pieces per day, double the production capacity of the existing line.
It will be able to produce a wide range of baked goods in addition to Domty Sandwich.
The line is worth $4m and is expected to come online in September next year. The cost of the line will be paid by using some of the cash proceeds raised through IPO, as well as retained earnings.
Additionally, Domty has signed a memorandum of cooperation with the US-based firm in order to draw benefit from AMF’s global expertise and launch new baked products for the Egyptian market.
The deal with AMF is reported to be in line with Domty’s expansion plan in the field of baked goods and snacks, a segment that offers a higher gross profit margin compared to the rest of the company’s products.
In January, the cheese company announced its plan to foray into the bakery and flavoured milk segments.
Established in 1988, Domty manufactures a wide range of branded white and processed cheeses and juice products under a brand portfolio including Damo, Gebnety and Bravo. The firm exports its products to 35 overseas markets.
