CAIRO-The Cotton & Textile Industries Holding Co. of Egypt makes a series of sizeable investments to modernize the country’s textile industry. Middle Eastern news outlet MENAFN reports that the company signed its first phase of contracts for $270 million earlier this week.
The initial phase of modernization includes a purchase of modern machines for spinning and weaving fabric, which the newspaper reports will improve quality and efficiency. A second set of contracts, totaling $540 million are slotted for August 2019. The contracts include orders for other machines for dyeing, finishing, and printing from multiple manufacturers. The company also expects to make improvements in worker efficiency and infrastructure. The final investment is estimated at more than $1 billion.
The move comes as the country aims to solidify and strengthen its hold in the textile and apparel market. With a foothold in various fabric-related industries, Egypt’s readymade garment exports crossed the $1.5 billion mark last year, with roughly 50% of that amount headed to the U.S.