DXN Launches Construction of Its Factory in Meknès and Aims for 250 Jobs
DXN Holdings Launches Construction of New Factory in Meknès
Malaysian group DXN Holdings has begun construction of its future factory in Meknès, which is intended to serve as a regional industrial hub supplying North African and European markets. The project is entering a new phase with negotiations underway with Moroccan authorities regarding a definitive investment agreement, which will outline the grants and incentives provided to the company.
Located in the Agropolis industrial park on a 80,765-square-meter site, this production unit marks DXN’s first industrial establishment in North Africa. It is expected to generate around 250 jobs and bolster Morocco’s role in DXN’s international development strategy.
Negotiations for an Investment Agreement
According to a statement from the group, DXN has secured its building permit and has commenced work on the Meknès site. Its subsidiary, Dexin Morocco, previously signed a memorandum of understanding on October 2 with the Ministry of Industry and Trade as well as the Ministry of Investment, Convergence, and Public Policy Evaluation.
Discussions are now focused on finalizing a definitive investment agreement. This agreement will particularly detail the terms of the public assistance and incentives designed to support the project’s implementation.
DXN’s CEO, Prajith Pavithran, views this establishment as a significant step in the group’s international development. He believes that Morocco will play a central role in supplying several markets, notably in North Africa, Europe, and the Middle East.
Production Focused on Spirulina and Ganoderma
The upcoming Meknès factory will focus on manufacturing products derived from spirulina and ganoderma, a mushroom widely utilized in certain Asian medicinal traditions. These two product categories are among the core offerings of DXN.
The site is intended to serve as a regional production center, complementing the facility already operated by the group in the Middle East. This strategy aims to bring industrial capacities closer to the served markets and optimize supply chains.
For DXN, this new establishment is expected to reduce logistical delays and costs while improving quality control and facilitating consumer access to the brand’s products. However, the tangible benefits will depend on the factory ramping up operations and launching its production activities.
Approximately 250 Jobs Expected in Meknès
With nearly 250 jobs announced, the project represents a new opportunity for industrial development in Meknès and its surrounding region. Its location within the Agropolis industrial park aligns with efforts to develop infrastructure that attracts production activities and international investors.
In addition to the direct jobs created, the factory’s launch could also create demand for services, transportation, logistics, and supply chain needs. The scale of these benefits will depend significantly on the selected industrial organization and the level of local integration of activities.
The signing of the definitive agreement and progress on the construction site will be the next important steps in clarifying the conditions for the project’s implementation.
DXN Aims to Expand from 14 to 21 Factories Worldwide
The investment in Morocco is part of a broader industrial expansion strategy. The Malaysian group plans to increase its production footprint from fourteen to 21 factories to facilitate the growth of its operations and strengthen its presence across multiple continents.
For the fiscal year ending February 28, 2027, DXN has budgeted an investment of up to 500 million ringgits, approximately 1.2 billion dirhams. These expenditures are aimed at boosting industrial capacities in Malaysia, Brazil, Morocco, Peru, and Bolivia.
The program also includes the development of plantations in Bolivia, Brazil, and Malaysia. The goal is to secure the group’s supply of raw materials and better control various stages of its value chain, from cultivation to commercialization.
Morocco’s Role in the Group’s International Strategy
Active in several international markets, DXN focuses on integrating its operations to maintain close proximity between its production sites and customers. The Meknès factory is set to enhance production capabilities aimed at North Africa and Europe.
The group also plans to continue expanding into new or underexploited markets, particularly in Africa and Europe. In this context, Morocco emerges as an industrial anchor to support its regional development.
The commencement of construction marks a tangible advancement in the project, even as several parameters remain to be clarified, including the final investment terms and the commissioning timeline. Ultimately, DXN aims to make its Meknès site a key component of its international industrial network, with targets for production, supply, and employment.
