To modernize the state owned textile sector, Egyptian government has allotted LE24 billion, which may still increase. Under the supervision of the Ministry of Public Enterprise Sector, modernization of the cotton and textile industries holding company and over 30 other affiliated companies is planned.
According to Mr Ahmed Mostafa, Head of the Cotton and Textile Industries Holding Company, Minister of Public Enterprise Sector Mr Ashraf al-Sharkawy has held meetings with agriculture and industry ministers to reach an agreement on cotton policies and agriculture that will promote textile development and through government bodies the company has begun evaluating a large number of its land plots for selling purposes to be able to provide funding required for the implementation of modernization plan for the companies. He further added that land plots owned by these spinning and weaving companies will be exchanged for repayment of debts in favor of creditors.
He said, “We are in the process of developing the cotton ginning facilities and reducing the number from 25 to 11, to be located in governorates that cultivate cotton. The equipment will be modernized to the highest level of technology and efficiency, with the training of workers, and then the development of spinning and weaving stages.”