Commercial International Bank Egypt has signed an US$80 million financing agreement to support the expansion of Eroğlu Knitting’s integrated textile manufacturing complex in the West Qantara Industrial Zone.
The financing package consists of a US$75 million medium-term loan and a US$5 million working-capital facility. The seven-year financing will support machinery and equipment purchases for the second and third phases of the Eroğlu Knitting project, also known as EMS.
Eroğlu Knitting is part of Türkiye-based Eroğlu Global Holding, which has been investing in Egypt’s textile and apparel industry since 2007.
The EMS complex represents an investment of approximately US$140 million and occupies around 150,000 square metres in West Qantara. Once all phases are operational, the project is expected to employ more than 4,500 people.
Integrated Complex Targets 24 Million Garments Annually
Eroğlu Knitting is developing an integrated production model covering several stages of the textile and apparel value chain.
The complex is designed to process cotton and manufacture yarn, knitted fabric, dyed fabric and finished garments using modern textile machinery and production technologies.
At full capacity, the project is expected to produce approximately 24 million ready-made garments annually, in addition to yarn and dyed fabrics. Surplus intermediate products may also be supplied to external customers.
Eroğlu Knitting projects annual revenue of around US$165 million once the facility reaches full operational capacity.
The entire output is intended for international markets. Approximately 50% of sales are expected to go to Europe, 30% to the United States and the remaining 20% to other export destinations.
The export-oriented structure could increase Egypt’s foreign-currency revenues while expanding its position as a regional manufacturing base for international textile and apparel brands.
The integrated model may also help the company exercise greater control over production planning, quality, lead times and material consistency. By combining upstream textile operations with garment manufacturing, Eroğlu aims to provide global customers with a more complete sourcing solution.
CIB Financing Supports Second and Third Phases
The US$75 million medium-term loan will finance machinery and equipment required for the second and third development phases.
The additional US$5 million working-capital facility will partially finance raw materials and other production requirements.
Amr El-Ganainy, deputy chief executive and executive board member at CIB, said the transaction reflected the bank’s commitment to supporting Egypt’s textile, ready-made garment and wider industrial sectors.
He described the Eroğlu Knitting project as an important addition to the Egyptian textile industry because of its integrated manufacturing model and exclusive focus on export markets.
According to El-Ganainy, financing large industrial investments can help Egypt expand local production, increase exports, attract foreign investment and create employment while supporting the objectives of Egypt Vision 2030.
CIB also views such projects as part of Egypt’s effort to strengthen its position as a regional manufacturing and export hub.
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Eroğlu’s Investments in Egypt Reach $370 Million
Eroğlu Global Holding began investing in Egypt in 2007 with the establishment of its first factories in Ismailia.
In 2009, the group established the DNM facility in the Damietta Public Free Zone with an initial investment of approximately US$100 million. It later added another US$60 million to expand the operation.
The group subsequently moved into the Suez Canal Economic Zone with the Eroğlu Knitting and Eroğlu Garment projects. Combined investment in these two facilities amounts to approximately US$210 million.
These investments have brought Eroğlu Global Holding’s total investment in Egypt to around US$370 million, according to company chairman Nurettin Eroğlu.
The US$140 million figure relates specifically to the Eroğlu Knitting project, while the US$210 million covers both the knitting and garment factories. The US$370 million total also includes the group’s earlier investments and expansions in Ismailia and Damietta.
Eroğlu Global Holding aims to increase exports from its Egyptian operations to US$450 million by the end of 2027.
The group also expects its investments to support approximately 10,700 jobs once all operations reach full capacity. This wider employment target covers the group’s expanded manufacturing operations rather than the EMS complex alone.
Nurettin Eroğlu described CIB as a strategic partner in the group’s continued expansion and said the financing would support an integrated production system serving major international brands.
West Qantara Builds Textile Investment Momentum
The financing agreement strengthens the growing concentration of textile and garment investment in the West Qantara Industrial Zone, which forms part of the Suez Canal Economic Zone.
West Qantara has attracted several international textile and apparel projects, supported by its proximity to ports, access to export routes and availability of industrial land and labour.
Eroğlu is separately developing a ready-made garment facility in the zone. A 2024 agreement allocated approximately 65,000 square metres for the factory, which was announced with an expected investment of US$40 million and a projected workforce of more than 3,000 people.
The combination of international investment, integrated production and access to European, US and regional markets is reinforcing Egypt’s position within the global textile sourcing landscape.
However, the commercial success of these projects will depend on maintaining competitive production costs, consistent quality, efficient logistics and compliance with the environmental and social requirements of international brands.
For Egypt, Eroğlu’s expansion represents more than additional garment capacity. Its integrated structure could help expand domestic spinning, knitting and dyeing capabilities while retaining a larger share of textile value within the country before finished products are exported.
