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Egypt denies plans to sell state-owned textile factories

Businessmen Team news 25 December 2025 03:19 PM
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Egypt denies plans to sell state-owned textile factories

In a statement released by the Cabinet’s Media Center, the Ministry of Public Business Sector clarified that the state is moving forward with a national project to overhaul the textile industry without relinquishing ownership or selling assets.

The ministry stated that the project covers approximately 60 factories and service buildings across seven governorates, involving construction, development, and rehabilitation to meet international quality standards.

The project, managed by the state-owned Holding Company for Cotton, Spinning, Weaving, and Clothes, spans nearly one million square meters. It involves seven major subsidiaries located in El Mahalla El Kobra, Kafr El Dawar, Shebin El Kom, Dakahlia, Damietta, Minya, and Helwan.

"The development project aims to revive this vital sector, reclaim Egypt’s global leadership in textiles, and achieve an unprecedented leap in production capacity," the statement said. It added that the goal is to boost exports and attract investment into what is considered a strategic pillar of the national economy.

While denying any sale of assets, the ministry emphasized its commitment to collaborating with the private sector. Opportunities for partnership include the management and operation of the newly developed plants to maximize asset value and increase the competitiveness of Egyptian products in global markets.

The statement highlighted significant progress in the project's timeline. Phase One (Completed late 2024): Included the launch of three factories at the Misr Spinning and Weaving Company in El Mahalla El Kobra, featuring Ghazl 1—the largest of its kind globally—alongside a new power plant.

Phase Two: Witnessed the completion of the Misr Shebin El Kom company and the experimental operation of the new Ghazl 2 factory. Final works are underway for four additional plants in El Mahalla, including dyeing and weaving complexes.

Phase Three: The final stage, covering the remaining regional companies, is currently seeing advanced rates of execution.