China's Lutai To Invest $385M In Its First Textile Factory In Egypt

(MENAFN- Daily News Egypt) Hossam Heiba, the CEO of the General Authority for investment and Free Zones (GAFI), has met a high-level delegation from Lutai Group, the world's largest producer of dyed fabrics and shirts, to discuss plans for the company's first factory in Egypt. The proposed facility, with $385m estimated investment, is set to strengthen Egypt's position in the global textile industry.

The factory, covering an area of 500,000 square meters, will serve as a key hub for Lutai's fully integrated supply chain, from yarn production and fabric manufacturing to finished garments. With a focus on 100% export, the new facility will help Egypt become a major player in the international textile market, aligning with the nation's strategy to boost exports.

The Lutai delegation included Liu Deming, Global Marketing Director; Du Lixin, Chief Technology Officer; Zhang Wei, Assistant Chairperson; and Li Jie, Director of Strategy and Marketing. The Egyptian delegation featured Mohamed Qassem, Chairperson of the Egyptian Exporters Association (ExpoLink); Shireen Taha, Director of Policy Support Unit; Ahmed Zohair, Head of the Central Department for Foreign Promotion at GAFI; and Menna Moenes, Investment Promotion Officer for Chinese projects.

Liu Deming emphasized that Lutai's entry into Egypt represents a significant step toward creating a comprehensive, fully integrated supply chain. The company plans to leverage advanced technology, including the world's most advanced spinning systems, to enhance production capabilities. Lutai's reputation for innovation is evidenced by its four-time receipt of the Chinese National Science and Technology Award, underscoring its commitment to high-quality, cutting-edge products. This will further boost Egypt's competitiveness in global markets.

Liu also highlighted the economic stability, sustainable growth, and skilled workforce that make Egypt an ideal location for the company's expansion. He noted the strong ties between Egypt and China, which facilitate the flow of Chinese investments into the country.

Hossam Heiba emphasized Egypt's favorable investment environment, driven by its investment law and associated incentives. He pointed out that Egypt's economic growth is consistently above the regional average, with access to trade agreements that open doors to a market of over three billion consumers. Moreover, Egypt's low costs for construction, utilities, and essential services make it an attractive destination for foreign investment.

Heiba also outlined the various investment systems available to businesses, ensuring that Lutai will receive the maximum financial and regulatory incentives. These incentives align with Egypt's goals of promoting technology localization, labor-intensive industries, export-oriented investments, and developing underutilized regions. The new factory is also eligible for the“Golden License,” a fast-track approval that guarantees all necessary permits within just 20 working days.

Mohamed Qassem, Chairperson of the Egyptian Exporters Association, noted the growing influx of foreign investment in Egypt's textile and garment sectors, particularly from China. This influx is driven by the global restructuring of supply chains and a search for investment-friendly environments. Qassem also highlighted Egypt's ongoing economic reforms, which improve the competitiveness of its exports in the textile and garment industries, further solidifying the country as an attractive destination for foreign capital.

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