DXN breaks ground on its first North African plant in Morocco
KUALA LUMPUR: DXN Holdings Bhd has begun construction of its first manufacturing facility in North Africa, in Meknes, Morocco following approval from the Moroccan authorities.
DXN Holdings Bhd has commenced construction of its inaugural manufacturing facility in North Africa, situated in Meknes, Morocco. The company received approval from Moroccan authorities, and work is now underway at the Agropolis Industrial Park. DXN is collaborating with the Moroccan government to finalize an investment agreement that will outline the subsidies and incentives for the project.
CEO Prajith Pavithran stated that this project marks a significant milestone in DXN's global expansion, as Morocco is crucial to the company's strategy to serve North Africa, Europe, and the Middle East. The facility, occupying an 80,765-square-meter site, will produce Spirulina and Ganoderma-based products, two of DXN's primary product lines.
The plant is projected to generate around 250 jobs and function as a regional production center for markets spanning North Africa and Europe, complementing DXN's existing facility in the Middle East. This endeavor aligns with DXN's broader goal of enhancing control over its value chain, from raw material sourcing to consumer distribution, and bringing manufacturing closer to key markets.
The company aims to expand its manufacturing network from 14 to 21 facilities, with capital expenditure of up to RM500 million earmarked for manufacturing capacity expansion in Malaysia, Brazil, Morocco, Peru, and Bolivia for the fiscal year concluding February 28, 2027. This investment will also support plantation initiatives in Bolivia, Brazil, and Malaysia to bolster raw-material security and facilitate market development in emerging markets, particularly in Africa and Europe.
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