Major Investment Deal For Egyptian Textile Industry Announced During ITMA 2019

BARCELONA, Spain — June 24, 2019 — During ITMA 2019, a press conference was held to announce a very large investment by the Cotton & Textile Industries Holding Co. of Egypt. The investment program, facilitated by Brussels-based Werner International, is designed to modernize Egypt’s textile industry and will leverage the prestige of Egyptian cotton to restore Egypt’s textile industry to prominence. The investment is supported by Egypt’s President Abdul Fatah Al-Sisi and the Minister of Public Enterprises Dr. Hisham Tawfik.

The total investment of approximately 1.1 billion euros ($1.25 billion) will be used to modernize spinning, weaving, knitting, dyeing, finishing, printing and cut-and-sew manufacturing. The investment will occur in phases and includes approximately 780,000 new spindles and 1,250 weaving machines. Dr. Ahmed Moustafa Mohamed, chairman of Cotton & Textile Industries Holding Co., reports as part of the investment, Egypt will construct a new state-of-the-art spinning mill for fine and extra-fine counts that will feature more than 180,000 spindles under one roof.

During the press conference, contracts were signed between Dr. Mohamed, and Rieter and Savio. Other companies that are part of this first investment phase are Benninger, including Thies and Brückner; EFI Reggiani; ITEMA; Karl Mayer; and Marzoli. Dr. Mohamed announced that a second phase will be signed within the next month.

“The Government of Egypt has decided to make a big investment into the textile industry of the public sector,” said Dr. Mohamed during the signing ceremony. “The program will have a major impact on the competitiveness and the success of the Egyptian textile industry in the future. It is an important step for our country. I am proud and happy that the leading machine suppliers are committed to support the holding company in the implementation of the program. We thank ITMA for having hosted the signing ceremony which gave us the opportunity to kick off our ambitious program so solemnly.”

Fritz Mayer, CEMATEX president remarked that ITMA was pleased to host the ceremony. “We are famous for our supportive attitude, and I am sure you will be successful,” Mayer said.

“It is always said history repeats itself, and I’m sure we will see a revival of the Egyptian textile industry,” said Ernesto Maurer, president, Swiss Textile Machinery Association.

The press release issued by the Cotton & Textile Industries Holding Co. can be viewed here.

Read Rieter’s press release about their participation in the ceremony here.

Posted July 24, 2019