Lutai Group is set to invest $385 million to establish its first textile factory in Egypt, enhancing the country’s position in the global textile industry. The facility will focus on a fully integrated supply chain and prioritizing exports. This investment reflects China’s growing interest in Egypt, driven by favorable economic conditions and ongoing reforms in the textile sector.

The General Authority for Investment and Free Zones (GAFI) in Egypt has engaged in discussions with Lutai Group, a globally recognized leader in dyed fabric production, about establishing its inaugural factory in Egypt with an investment of $385 million. This facility, spanning 500,000 square meters, aims to enhance Egypt’s influence in the global textile sector by providing a comprehensive supply chain from yarn production to finished garment manufacturing, primarily for export purposes.

The delegation from Lutai included high-ranking officials such as Liu Deming, Global Marketing Director, and Du Lixin, Chief Technology Officer, while the Egyptian side featured key figures such as Mohamed Qassem, Chairperson of the Egyptian Exporters Association. Liu Deming articulated that this investment signifies a major stride towards forming an integrated supply chain in Egypt and emphasized the company’s intention to utilize state-of-the-art technology to bolster production efficiency and quality.

Furthermore, Liu underscored the importance of Egypt’s economic conditions, identifying the stability, growth prospects, and skilled labor force as compelling reasons for the company’s expansion into the country. He spoke of the historical ties between Egypt and China, which facilitate mutual investment opportunities. Similarly, Hossam Heiba, CEO of GAFI, highlighted Egypt’s attractive investment climate, supported by favorable laws and incentives that surpass regional growth averages.

He elaborated on the diverse financial and regulatory systems available to investors, ensuring that Lutai benefits from the maximum incentives, aligned with national objectives to enhance exports and technological localization. The new facility will have the potential to obtain a “Golden License,” expediting all necessary approvals.

Mohamed Qassem referenced the increasing foreign investments in Egypt’s textile sector, particularly from Chinese entities, influenced by global supply chain dynamics and the pursuit of more favorable investment conditions. He also acknowledged the economic reforms underway in Egypt, which are crucial in bolstering the competitiveness of the textile industry.

The investment by Lutai Group signifies a crucial development within Egypt’s textile industry, aiming to transform the nation into a key player in the global market. Egypt’s strategic location, combined with its economic reforms and favorable investment conditions, present an attractive opportunity for foreign investors, particularly amidst the ongoing restructuring of global supply chains. With the establishment of this factory, Egypt is poised to leverage its existing advantages to enhance exports and establish a robust presence in the international textile market.

In summary, Lutai Group’s decision to invest $385 million in a textile factory in Egypt exemplifies the country’s growing importance as an investment hub in the textile sector. The establishment of this facility will create an integrated supply chain, significantly enhance production capabilities, and position Egypt as a formidable competitor in the global textile industry. With support from both the Egyptian government and Lutai’s advanced technology, this venture is expected to yield significant economic benefits and increase job creation in the region.

Original Source: www.dailynewsegypt.com

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