Amrit Medical is currently the largest producer of medicines and pharmaceutical products in Syria, and is well positioned to enter the cosmetic market because of manufacturing and logistical cross-overs between the two industries.
Mercatum says it will invest €11 million into the project, which will see a brand new, ultra-modern production facility constructed in Aleppo, Syria's second largest city situated in the North of the country. Work is due to begin on the project in the next few months.
The facility will employ 120 staff who will be involved in the production of three lines, namely Lipogen, Dr. Heuberger and Stagecolor. The company specialises in colour cosmetics and skin care ranges, mainly for professional use.
Majed Djamous Manager of Mercatura Syria said: "Because the production facility will be equipped with the most up to date European technology we are in a position to produce high quality cosmetic products that can be tailored-made according to the specific needs of Arabic consumers."
The new facility will benefit from existing synergies provided by Amrit Medical, including an established distribution network which will enable it to develop its niche position in a host of markets throughout the Middle East region.
Mercartum estimates that in the first 18 months of production the new Syrian facility will generate a sales revenue volume of approximately €15 million.
"This is an important step in the increasing internationalization of our company," said Dr. C. Heuberger CEO for the Mercatura Corp. "The move into Syria puts us in a strong position to elevate our innovative cosmetic ranges throughout the Arabic market."
According to Euromonitor the cosmetic and toiletry market in the Middle East is currently growing at an unprecedented rate of 12 per cent a year, to give it a total market value of $1.7 billion. That figure is projected to reach $2.1 billion by the end of 2006.
Consumption of cosmetics is said to be strongest in the Gulf States, where avarege per capita expenditure is currently estimated to be $334 per person - one the highest rates in the world.