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World’s Largest Spinning Factory in Egypt

An Egyptian state company signed a contract on Thursday, July 9, 2020 to establish the world’s largest spinning plant.

Egypt’s state-run Cotton and Textile Industries Holding Co. has signed a contract with Gama Construction to establish a new spinning factory in El-Mahalla El-Kubra.

This comes as part of the Ministry of Public Business Sector’s target to implement a comprehensive development plan for cotton, spinning, and weaving industries.

It is set to be the world’s largest spinning factory that will be built over an area of 62,500 square meters (sqm), according to a statement by the Ministry of Public Business Sector on Thursday.

The construction works of the plant are expected to take 14 months for completion at an estimated cost of EGP780 million, with an average output capacity of 30 tons of yarn per day.

It is noteworthy that the development plan is scheduled to take about two and a half years, at a cost of over EGP21 billion ($1.3 billion).

Apparel and Textiles Industry in Egypt

The plan is based on enhancing specialization and reducing the frequency of the same activities in more than one company, by merging 23 spinning, weaving, dyeing and processing companies into nine companies.

It also aims at merging nine companies for cotton ginning and trade into a single specialized one to carry out this activity.

Most of these companies will continue their normal activity until the merger process is completed, which is expected to be concluded before the summer of 2021.


Meanwhile, Egypt’s annual urban consumer price inflation increased to 5.6 percent in June from 4.7 percent in May, state Central Agency for Public Mobilization and Statistics (CAPMAS) announced on Thursday.

Month-on-month headline inflation stood at 0.1 percent in June, from 0 percent in May, the agency said.

According to CAMPAS, the prices of food and drink dropped in June by about 1.6 percent compared to May, to record 101.6 points, while it rose on an annual basis by about 0.4 percent compared to the corresponding month in 2019.

It pointed out that the urban inflation rate increased by 0.1 percent in June compared to May, amounting to 107.7 points, while it rose to 5.6 percent year-on-year compared to the corresponding month in 2019.

Source: (Reuters) Cairo – Asharq Al-Awsat

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    Marketing manager

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