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Wednesday, December 24, 2025

Egypt bets on textile modernisation to revive a strategic industry

Billions in state investment and private-sector partnerships aim to restore competitiveness, exports and jobs in Egypt’s historic spinning and weaving sector.

Mostafa Madbouly has signalled renewed urgency in Egypt’s drive to modernise its textile and spinning industry, describing the sector as a cornerstone of the national economy. Chairing a high-level review meeting in the New Administrative Capital, the prime minister assessed progress on a sweeping state-led upgrade programme covering factories, systems and production technologies.

The plan targets long-standing inefficiencies through large-scale capital investment, automation and operational restructuring. The objective is to lift product quality, expand output, boost exports and create sustainable industrial employment. Billions of Egyptian pounds have already been committed, with the government now increasingly turning to private-sector partners to manage and operate facilities, aiming to protect public investment and improve asset utilisation.

Progress reports suggest tangible momentum. At the flagship Egypt Spinning & Weaving Company in Mahalla, completion has reached 95.5% at the spinning plant and 90% at the dyeing unit. In Kafr El-Dawwar, redevelopment of the Egypt Spinning & Dyeing Company stands at 79%, while facilities in Damietta report completion rates above 80% across spinning, preparation and dyeing operations. The Upper Egypt Spinning & Weaving Company in Minya has reached 71%.

Several projects are already operational, including the Shibin El-Kom Spinning & Weaving Company’s second spinning unit, designed for daily output of around 10 tonnes of yarn, and the Dakahlia Spinning & Weaving Company.

Beyond bricks and mortar, officials also reviewed sales, inventory and export performance at synthetic fibre and cotton trading subsidiaries. The broader strategy reflects Cairo’s attempt to reassert control over a once-dominant sector—combining public capital with private management—to restore competitiveness in global textile markets and anchor industrial growth at home.

 

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