Home / Knowledge / News / Apparel/Garments / Egypt plans upgrade of state-run spinning, weaving firms

Egypt plans upgrade of state-run spinning, weaving firms

11
Jul '19
Pic: Shutter Stock
Pic: Shutter Stock
Egypt recently initiated an ambitious plan to upgrade the public-sector spinning and weaving industry within four years at a cost of LE25 billion. The plan includes developing the infrastructure of the companies, procuring advanced machines from Germany and Italy and training workers to use the equipment, according to public enterprise minister Hisham Tawfik.

The aim is to eliminate the losses of the companies, estimated at LE2.7 billion in 2018, and turning those into profits of LE3 billion within four years, Tawfik said.

Thirty two companies affiliated to the Holding Company for Spinning and Weaving will be merged to form 10 large companies while changing three of them, Mahalla, Kafr Al-Dawar, and Helwan, into integrated giant complexes.

The plan also involves reviving cotton cultivation by increasing export of finished products rather than depending on exporting raw cotton, allowing the industry to benefit from higher added value, according to a report in an Egyptian newspaper.

Amr Nassar, minister of industry and foreign trade, said the government is giving priority to promoting the textiles sector not only by developing the public-sector companies but also by attracting foreign investment in the sector.

The public-sector companies have long posted losses due to high production costs, debt to governmental agencies and the lack of a qualified labour force. Factories and machines have not been upgraded for decades.

According to an anonymous former government official quoted in the report, it is not clear if the government would use Egyptian cotton in the factories. If Egyptian long-staple cotton is to be used to produce readymade garments, these products will be difficult to market as they will be expensive and global demand for such high-quality goods is limited, he said.

The exports of the public spinning and weaving companies currently comprise 12 per cent of total exports. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutter Stock

Fashion | On 18th Jul 2019

China's CEIS, Orient Intl unveil fashion industry index

Paris Fashion Week, New York Fashion Week, London Fashion Week, Milan ...

Pic: Shutter Stock

Apparel/Garments | On 18th Jul 2019

5 Vietnamese garment firms sign collective labour pacts

Five garment firms based in the Van Lam district of Vietnam's Hung...

Pic: Shutter Stock

Textiles | On 18th Jul 2019

Growth of Chinese economy lowest since 2009 Q1

China's economy grew 6.2 per cent over a year ago in the quarter...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

It will take some time for the people to change their buying choices

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Arvind Saraf, Triveni Sarees

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Anupam Arya,

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Marcus Hardelauf,

Marcus Hardelauf

Germany-based Textechno is one of the leading manufacturers of testing...

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search