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Chinese company sets up shop in Egypt to save costs
Nov '09
Finding Egypt as an ideal place for ready-made garment production with cheap labour rates, investment incentives and unrestricted exports, one of the Chinese textile groups has moved to Egypt to produce its ready-made garments to overcome stiff competition at home.

Chinese-owned Nile Textile Group has built an industrial estate in Egypt, which employs around 600 workers including 20 percent of Chinese origin, has proved to be a good deal for the company.

The company imports around 60 percent of its basic products without taxes and ships them out of Egypt, particularly to the US markets.

On account of low priced raw materials as well as favorable export conditions, the China-owned company penetrated the international markets with ease. Most of company products are now labeled as 'Made in Egypt' rather than 'Made in China'.

There are almost no restrictions for exports around the globe from Egyptian free zones, wherein around 950 Chinese companies have set up their operations with a total investment of about $300 million.

Fibre2fashion News Desk - India

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