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.
The vertically integrated global wellness manufacturer said the project received its construction permit, and work is now underway at the Agropolis Industrial Park.
"DXN is now working with the government of Morocco to finalise a definitive investment agreement, which will set out the investment subsidies and incentives for the project," it said in a statement.
The memorandum of understanding between its subsidiary, Dexin Morocco SA, and Morocco's Ministry of Industry and Trade and Ministry of Investment, Convergence and Evaluation of Public Policies concluded on Oct 2.
DXN group chief executive officer Prajith Pavithran said the project had progressed from an initial agreement to an approved development with construction underway.
"Our first manufacturing plant in North Africa is a major step in DXN's global growth, and Morocco is central to how we will serve North Africa, Europe and the Middle East in the years ahead," said Prajith.
The facility, which will be built on an 80,765-square-metre site, will manufacture Spirulina and Ganoderma-based products, two of the company's core product lines.
The plant is expected to create about 250 jobs and serve as a regional production hub for markets across North Africa and Europe, complementing DXN's existing manufacturing facility in the Middle East.
The Morocco project forms part of the company's strategy to strengthen control over its value chain, from raw-material production to consumers, while bringing manufacturing closer to its markets.
DXN plans to increase its manufacturing network from 14 factories currently to 21.
For the financial year ending February 28, 2027, the group has allocated capital expenditure of up to RM500 million to expand manufacturing capacity in Malaysia, Brazil, Morocco, Peru and Bolivia.
The allocation will also support plantation initiatives in Bolivia, Brazil and Malaysia to strengthen raw-material security, as well as market development in new and underpenetrated markets, particularly in Africa and Europe.
Prajith said the Morocco facility would improve product accessibility for consumers while supporting shorter supply lines, lower costs and better quality control.
"With construction underway in Meknes and the continued support of the Moroccan authorities, we look forward to completing the plant," he added.
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