Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), recently met with a delegation from Lutai Group, the largest global producer of dyed fabrics and shirts, to discuss the establishment of the company's first factory in Egypt. This facility, projected with an investment of $385 million, aims to enhance Egypt's role in the global textile industry.
The new factory will occupy 500,000 square meters and function as a central hub for Lutai's fully integrated supply chain, encompassing yarn production, fabric manufacturing, and finished garment assembly. The facility will focus on 100% export, aligning with Egypt's strategy to increase its export capacity.
The Lutai delegation included key figures such as Liu Deming, Global Marketing Director, and Du Lixin, Chief Technology Officer. From the Egyptian side, notable attendees were Mohamed Qassem, Chairperson of the Egyptian Exporters Association, and Shireen Taha, Director of the Policy Support Unit.
Liu Deming remarked that Lutai's investment in Egypt represents a pivotal advancement towards establishing a comprehensive supply chain. The company intends to utilize advanced technologies, including state-of-the-art spinning systems, to improve production efficiency. Lutai's commitment to innovation is reflected in its multiple accolades from the Chinese National Science and Technology Award.
He also underscored Egypt's economic stability, growth potential, and skilled labor force as critical factors in the decision to expand operations in the country. Strong bilateral ties between Egypt and China further facilitate investment flows.
Hossam Heiba highlighted Egypt's conducive investment climate, supported by favorable laws and incentives. He noted that Egypt's economic growth consistently surpasses the regional average and that trade agreements provide access to a market of over three billion consumers. The country also boasts low operational costs, making it an appealing destination for foreign investors.
Heiba detailed the various investment systems available, assuring Lutai of maximum financial and regulatory support. These incentives align with Egypt's objectives to foster technology localization and develop underutilized regions. The factory will also qualify for the 'Golden License,' which expedites the approval process for necessary permits.
Mohamed Qassem observed a rising trend of foreign investments in Egypt's textile and garment sectors, particularly from China, driven by global supply chain restructuring. He emphasized that ongoing economic reforms are enhancing Egypt's export competitiveness in these industries, reinforcing the country’s status as a prime location for foreign capital.