CAIRO, Jan 13 (MENA) - Elsewedy Industrial Development, a subsidiary of Elsewedy Electric, signed an agreement with China's Kingdom Holdings company to allocate a 50,000-square-meter plot in Industria Sadat city for establishing a private free zone.

Under the agreement, the Chinese company will build the first advanced textile factory in Industria Sadat city at a cost of USD 60 million.

The deal was inked by Mohamed El Kammah, CEO of Elsewedy Industrial Development, and Ren Weiming, Chairman and CEO of Kingdom Holdings Limited.

The signing ceremony was attended by Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), Yehia El-Wathik Bellah, Minister Plenipotentiary and Head of the Egyptian Commercial Service and Ahmed Elsewedy, President and CEO of Elsewedy Electric.

Kammah said this project will bring an added-value to the industrial landscape of Industria Sadat, which contributes to diversifying the city's industrial base.

Furthermore, he added Egypt offers promising investment opportunities, especially in the textile industry, which is considered one of the country's most competitive sectors.

"At Elsewedy Industrial Development, we are dedicated to attracting foreign investments and supporting international investors in collaboration with the General Authority for Investment and Free Zones. This agreement marks the establishment of the second private free zone in Industria Sadat, reaffirming our commitment to supporting export-driven projects," Kammah added.

"This agreement aligns perfectly with the Egyptian government’s vision to double textile and garment exports by 2026, strengthening Egypt's position as an attractive investment destination. It is worth mentioning that the textile sector's exports reached USD 1.2 billion in 2023 and are projected to rise to USD 1.4 billion by 2025, fueled by enhanced competitiveness and robust international partnerships," the CEO of Elsewedy Industrial Development added.

Commenting on this collaboration, Ren Weiming stated, "We are optimistic about Egypt's development and have great confidence in its business environment. This is our first investment project in Egypt, and its success will serve as the starting point for our continued investments in the country. Therefore, we are committed to working with Egyptian government authorities and outstanding local enterprises to make our project a benchmark and a true representation of Egyptian manufacturing excellence."

Furthermore, Yahya El Wathik Bellah highlighted the successful efforts of the Commercial Representation Office in Shanghai over the past year, which played a pivotal role in persuading the Chinese Kingdom Holdings to consider Egypt as a key market for expansion.

"These efforts led to seven visits by the company to Egypt between March and September 2023 to explore establishing a yarn production project, with an estimated initial investment of USD 60 million," he said.

He further emphasized that the coming period will witness more engagement with Chinese companies to encourage them to launch their projects in the Egyptian market.

In addition, Hossam Heiba, the CEO of GAFI, highlighted the authority's efforts over the past two years to involve the private sector in promoting investment opportunities and fostering partnerships in feeder industries.

Heiba underlined the important role of this partnership in creating a powerful entity capable of competing globally.

"By combining Egyptian expertise in textiles with cutting-edge Chinese technologies, the project will operate within a private free zone designed to meet international standards, enhance exports, and boost the global competitiveness of Egyptian products," he added.

"The authority remains committed to providing full support to achieve the project's primary goal: establishing a complete flax industry supply chain in Egypt to maximize value addition and revive the country’s leadership in this sector," Heiba noted.

It is worth mentioning that the new factory, set to begin operations in 2026, will have an annual production capacity of 5,000 tons of flax yarn, generating USD 300 million in sales and creating 1,500 jobs for Egyptian youth. (MENA)

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