Nexgen Packaging, a multinational tag and label designer, is set to erect a new $2 million (Sh245.5 million) plant to begin operations in April next year.
The factory, to be domiciled within the Export Processing Zone at Athi River, promises at least an additional 50 direct jobs for locals on top of tilting favour for indirect investments into the region.
The firm’s sales director for East Africa Javier Menchen said the new plant will produce tags and labels for the fashion industry which must be attached to the garments before export.
“Nexgen manufacturing in Kenya will have a favourable impact on future indirect investments in the region, resulting in significant growth in exports, sales, employment, and investment. Making Kenya’s garment sector vertically integrated is a very important factor for the growth of the retail manufacturing industry in Kenya and Africa,” stated Menchen.
Nexgen managing director Manuel Torres expressed confidence that the setting up of the Kenyan plant, coupled with the human capacity that the firm eyes to build, will greatly impact not only the country but also the continent at large.
“We are building a great team in Nairobi with significant industry and regional experience. Combined with the investments we are making in capabilities and capacity, I am confident that customers will see immediately the value we will bring to their African production operations,” said Torres.
The Kenyan factory is going to act as Nexgen’s continental headquarters and is set to add to the capabilities and capacities of the firm’s operations in Ethiopia, Egypt and West Africa.
Menchen said the factory will occupy a piece of land leased from a firm identified as Contech, who will build three sheds to be made from reused containers.
Nexgen will be eyeing the rich markets in Europe and the US with an annual production of 100 million tags and labels, as they also attempt to navigate the local market.
Since its inception in 2006, the company has established a presence in 19 countries and boasts over 12,000 manufacturing entities globally has built a portfolio of apparel branding products, variable data products as well as other packaging solutions.