The Egyptian Ministry of Public Business Sector has made significant strides toward revitalizing the nation’s textile industry, culminating in substantial achievements throughout the year 2024. Al-Aamal Newspaper highlights these developments, particularly with the operational launch of the largest spinning factory in the world, 'Ghazl 1' located in Mahalla.
After months of preparation, the new manufacturing machineries at 'Ghazl 1' are installed and ready for trial operations, aiming to produce around 30 tons of yarn each day once fully operational. This factory is not just about quantity; it symbolizes Egypt's commitment to reclaiming its historical prominence within the global textile market.
According to reports, the Ministry has implemented comprehensive development plans inclusive of significant upgrades across several factories within the textile sector. Recent figures reveal astonishing revenue targets set for the fiscal year 2024-2025 with projected earnings of 62.5 billion EGP, marking an impressive 88% increase from the previous year. The Ministry also anticipates net profits of approximately 17 billion EGP. This ambitious growth signifies Egypt’s efforts to bolster its economic contributions through industrial advancements.
One of the highlights of this strategy is the successful commissioning of 'Ghazl 4', which is another major textile factory come online. The operational readiness of 'Ghazl 4' commenced back in October 2024, aiming for production initially set at 3 tons daily, with plans to gradually increase up to 13 tons per day.
This factory isn't just another production facility but is strategically aligned to cater to international markets. Irrespective of previous challenges faced by Egyptian textile exports, contracts with countries such as Turkey, India, and Pakistan are already secured, confirming the factory's role within the global supply chain.
Ahmed Badr, the CEO of Egyptian Cotton and Textile Industries, shared insights on the factory’s intentions, emphasizing, "The first developed factory 'Ghazl 4' was officially activated, targeting production for export with contracts extending through the year with Turkey, India, and Pakistan." His vision encompasses modernizing manufacturing processes to compete with the best brands globally.
The ministry's plans do not merely stop at factory operations. With aspirations of merging 23 textile companies and optimizing operational efficiencies, the restructuring aims to create strong economic entities capable of enhancing management and operational performance across the sector. "Our goal is to develop strong economic entities for effective management," Badr added, underlining the strategic focus on consolidation and efficiency.
Alongside this, the ministry plans to revive old capabilities such as the production of polyester fibers and silk under its future projects aimed at meeting the diverse market demands effectively. The overarching goal is to achieve economic resilience and align operations with global trends.
Investments for these plans amount to over 50 billion EGP, demonstrating the national focus on revitalizing one of its traditional industries. This financial backing reflects the government’s dedication to adopting progressive practices and bolstering investor confidence.
For the future, the Egyptian textile industry stands at the threshold of transformative change. The simultaneous construction of several factories is anticipated to not just increase production volume but also drastically improve quality standards as facilities adopt cutting-edge technologies. "The industry will rebound stronger, catering both local and international demands," industry analysts are optimistic about the growth trajectories.
Uniquely, these infrastructural improvements are rooted within the framework of Egypt’s Vision 2030, which seeks sustainable development across all sectors, positioning Egypt as both a regional and global manufacturing hub.
Conclusively, the advancements heralded by the Ministry of Public Business Sector are promising indicators of renewed growth for Egypt's textile industry. If successfully executed, these initiatives could restore Egypt’s status as one of the leading textile producers worldwide, benefiting its economy and job creation efforts significantly.
