Oriental Weavers Carpet and two of its subsidiaries signed an agreement with the Ministry of Finance and the Ministry of Trade and Industry to settle the backlog of export incentives valued at EGP 322 million, until last June.
Under the deal, Oriental Weavers Carpet as well as its two units Oriental Weavers International and Oriental Weavers Textiles will inject capital expenditures (CAPEX) of EGP 606 million between 2019 and 2023 in order to receive the export incentives, according to a statement to the Egyptian Exchange (EGX) on Monday.
According to the plan, the Egyptian company will build a new factory to polyester, polypropylene, and yylon yarn as well as regenerated polyester fibers.
Oriental Weavers also plans to add new looms in order to increase production capacity and replace the old looms with new ones.
In addition, Oriental Weavers’ subsidiaries MAC and EFCO are currently considering the settlement of their backlog which stands at EGP 250 million.
It is noteworthy that during the first nine months of 2019, the company logged a net profit of EGP 597.36 million, compared to EGP 436.4 million in the corresponding period a year earlier, including minority shareholders’ rights.