The Holding Company for Cotton, Spinning & Textiles, one of Egypt’s biggest textile companies, has signed a contract to establish the world’s largest spinning factory in the country.
“This comes within the framework of the Ministry of Public Business Sector to implement a comprehensive development plan for cotton and weaving industries,” reports See News’ Taarek Refaat.
As part of the development plan, 23 spinning, weaving, dyeing and processing companies in Egypt will be merged into nine entities, while nine cotton trade and ginning companies will be merged into a single entity, as part of efforts to forge the world’s largest spinning factory, said Hesham Tawfik, Egypt’s Minister of Public Business Sector in a televised interview.
Within the LE21bn (US$1.3bn) project in the North African country, Tawfik says the government will develop and modernise the companies, alongside comprehensive development in machinery, management, marketing and training systems.
Egypt’s President, Abdel al-Fattah al-Sisi, recently opened up eight new factories, which Tawfik says accounts for 8% of the project.
The project will take place in El Mahalla El Kubra, a large industrial and agricultural city in Egypt, and the mergers are set to conclude in the summer of 2021, while the last new factory will be established in the first half of 2022.
Tawfik says the developmental project will enable Egypt to compete and triple current production capacity.
The project will seemingly merge the companies within one factory setting – located in an area of around 62,500 sqm. Construction at the factory is predicted to take around 14 months at an estimated cost of LE780m (US$48.7m), according to the Egypt Independent. The factory is reported to have an average production capacity of 30 tonnes per day.
The companies involved in the merger are expected to continue usual day-to-day activities until the process reaches completion.
The announcement follows the inauguration of a new industrial complex in Egypt. President al-Sisi inaugurated the cotton textile complex, which comprises six factories in Robeiki industrial city, an official statement said.
Al-Sisi said that the government has embarked on the execution of an ambitious plan to develop the country’s textile industry.
Source: https://www.wtin.com