Egypt and Kekkilä-BVB Discuss New Alternative Soil Plant in SCZone to Boost Precision Farming

Egypt is actively exploring the establishment of a local manufacturing facility dedicated to producing alternative soil, a move designed to reduce import reliance, decrease agricultural production costs, and bolster the growth of modern, high-value farming and agri-exports.

Industry Minister Khaled Hashem recently held discussions with Pekka Tennilä, CEO of Kekkilä-BVB, regarding the company's proposal to build the new factory in Egypt through a partnership with the Egyptian agritech firm Agriventure. Situated in the Suez Canal Economic Zone, the planned facility will manufacture alternative growing soil specifically tailored for precision farming.

Minister Hashem emphasized that localizing the production of alternative growing soil represents a key strategic priority. This initiative aims to bolster modern and protected agriculture, increase the value added within agro-industrial manufacturing, link scientific research with industrial outcomes, meet stringent export standards, and narrow the import gap.

Furthermore, the minister underscored the necessity of deploying advanced technologies and innovative solutions to conserve water and maximize resource efficiency across agricultural activities, thereby enhancing the competitiveness and export capacity of agro-industrial projects.

Representatives from Kekkilä-BVB noted that alternative growing media constitute approximately 30% of precision farming expenses, making local production vital for lowering overall agricultural costs. The upcoming factory is intended to supply the domestic market while simultaneously scaling up exports to European, African, and Arab markets.

In addition, Hashem suggested that Agriventure could get involved in the ministry’s “Productive Village” initiative, focusing on rural areas recognized for their competitive advantage in producing medicinal, aromatic, and export-oriented crops. This broader initiative seeks to foster balanced industrial development, curb irregular migration, and leverage regional strengths by providing small industrial workshops, concessional financing, and technical support to integrate small businesses into larger supply chains.