SCZONE Signs $10M Usufruct Deal With Chinese Firm For Garment Factory In Qantara West

(MENAFN- Daily News Egypt) The Suez Canal Economic Zone (SCZONE), represented by its Chairperson Walid Gamal El-Din, has signed a usufruct agreement with Chen Xiaodong, President of the Chinese JiangSu GuoTai International Group (GTIG), for the establishment of a ready-made garment factory in Qantara West industrial zone.

Spanning 21,000 square meters, the factory represents an investment of $10m (EGP 500m) and is expected to generate 2,000 direct job opportunities. It will export its entire production to international markets, reinforcing Egypt's position as a key player in the global textile and apparel industry.

On the sidelines of the signing ceremony, Gamal El-Din highlighted ongoing efforts to attract foreign investments across SCZONE's industrial zones and ports, focusing on strategic sectors targeted for localization. He emphasized that Qantara West is rapidly developing into a global investment hub, particularly for textiles, ready-made garments, and agro-industries.

So far, 15 usufruct contracts have been signed in Qantara West, totaling $490m in investments and covering over 1.031 million square meters, creating more than 20,000 job opportunities. These projects maintain an average export rate of 80%, with primary markets in Europe and the Americas. The West Port Said Port, a key SCZONE facility, is expected to witness increased trade activity, serving as a vital gateway for exports to Mediterranean and European markets.

The SCZONE has already commenced work on five projects within Qantara West, with the first two set to be inaugurated in the second half of 2025. Gamal El-Din reaffirmed the authority's commitment to localizing industries, supporting workforce development, and maximizing the benefits of SCZONE's economic tools-which include integrated industrial clusters, seaports, logistics zones, investment incentives, and free trade agreements that provide broad market access.

GTIG, founded in 1988, is one of China's leading conglomerates, ranked 329th in the Fortune China 500 list for 2023. The company specializes in textiles, garments, spinning, yarns, fabrics, home textiles, and accessories, with operations across Asia, Europe, and the United States. Employing over 4,000 people, GTIG reported revenues of $9.2bn in 2023, further solidifying its status as a global industry leader.

This agreement reinforces Egypt's growing appeal as a preferred investment destination for international textile manufacturers and is set to contribute significantly to job creation, industrial growth, and export expansion in the SCZONE.

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