Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing...

24
Special ITMA Edition Sponsored by Co- Sponsor Khoyout Special Edition - Published by Khoyout Marketing TEXTILE INDUSTRY IN EGYPT www.khoyout.com | June 2019 | ITMA Edition

Transcript of Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing...

Page 1: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

Special

ITMA Edition

Sponsored by Co- Sponsor

Khoyout Special Edition - Published by Khoyout Marketing

TexTile indusTry

in egypT

www.khoyout.com | June 2019 | ITMA Edition

Page 2: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment
Page 3: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment
Page 4: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

04 www.khoyout.com | June 2019 | ITMA Special Edition

Retaining well-off clothing industries geared up for large-scale progression whilst allowing

for huge influx of genuine advanced textile technologies. The African continent is

singled-out as a major future garment and textiles industrialization destination; as

the African textiles and clothing industry classifies according to the World Bank

economic reports amongst the fast growing categorical economic sectors in the world. The continent enjoys true huge potential to

become “the next stop for textile industries”.

unraveling africa's

poTenTial

Page 5: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

05www.khoyout.com | June 2019 | ITMA Special Edition

poTenTial

Africa’s Textile Industry

• Globally,thefashionindustryisexpectedtodoubleinthenext10years,generatinguptoUS$5trillionannually.

• Fashion isabigbusiness inAfrica.Thecombined apparel and footwearmarketinsub-SaharanAfricaisestimatedtobeworthUS$31 billion, according to datafrom Euromonitor International.

• Africaiscertainlyonitswaytobecomingthemajorregionalapparelhubwithgreatpropensitytoprovidecompetitiveprices.The African textile and apparel fertilemarket keeps engendering attentionamong international brands looking fornew industrial destinations.

• Textile products manufactured in manyAfrican countries qualify for both USand European market standards underseveral trade agreements as duty freeproducts, with no quota restrictions.

STITCH & TEX EXPO - AFRO EDITIONUnlocking Africa’s Textile Industries Potential

STITCH&TEXEXPO-AFROEDITION;willfeaturethenewconceptoforganizing

twoconsecutivetradefairs.Thefirsttradefairisdedicatedtogarment

processing technologiesincluding Sewing &Embroidery Technologies,

Fabrics and Accessories;while the second is dedicated

to textile processing technologiesincluding Spinning, Weaving, Dyeing,

Textile Printing and Knitting Technologies,Machinery,AccessoriesandChemicals;Thetwo events are held under the giant brandSTITCH&TEXEXPO-AFROEDITION;andwill be held in the prestigious venue CairoInternational Conventions and ExhibitionsCenter- Egypt.Renownedexclusivelyforsevenconsecutiveeditionsastheoneandonlybusinesseventcommittedtoprovidingawe-inspiringnoveltieswithinthetextiletechnologiessector;STITCH

&TEXEXPO-AFROEDITIONstimulatestheupwardmomentumofthetextileindustriesintheentireAfricancontinent;withspectaculartrend displays, all-inclusive tendenciesexpositions and conspicuous know-howcovering the entire spectrum of textilerelated technologies, equipment, fixtures,components, accessories, applications and

fittings.Highlighting a wide-range of superior mostmodernizedtextilemachineryandequipmentdemonstrated by the world’s supreme keyplayers; STITCH & TEX EXPO - AFROEDITION upswings promptly as the soledistinctive professional trade event withintheAfricancontinent;drivenbytheelevating

Why Africa? ( Demographic and Macro-economic Potentials)

Africa's Real GDP growth in 2018 is expected to reach 4.3% compared to 3.4% in 2017 and 2.2% in 2016, with expectations to reach 4.8% by 2020.

Private consumption grew at an average of 3.7% between 2010 and 2016 and is expected to remain at an average of 3.5% during 2017 - 2018, while the expectations for 2020 is that the increase in private consumption will reach 4.6%.

The growing population is expected to lead to a rise in consumer spending from USD 680billion in 2008 to USD 2.2 trillion by 2030.

Technology-based innovations are considered a main platform for entrepreneurship business in Africa that is growing at 11%, exceeding Latin America 10% and Asia 5%.

Foreign investments in Africa reached US$57 billion in 2017 in diverse sectors (technology, manufacturing, transport, construction, financial services) , the figure of foreign investments is expected to reach US$ 80 billion in 2020.

Africa is rich with its abundant resources which are represented in vast areas of land, various climate conditions, fertile agricultural lands, large amounts of fresh water, animal resources, oil , gas, low wage workers and minerals.

Many governments in Africa made it top priority to acquire the most advanced technologies , materials and products as a one and only decisive factor to further stimulate the industrial competitiveness whilst enhanc-ing the output, with more than 26 African countries already having ambitious industrial modernization plans.

Africa is the Home to 1.2 Billion Inhabitants, with 60% of the population below the age of 25, representing tremendous workforce.

Fluctuating life-styles and sustained growth of the middle-income bracket (USD 5,000 +) create a massive need for competitive modernized services and products all around Africa.

Page 6: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

06 www.khoyout.com | June 2019 | ITMA Special Edition

Exhibitor Profile

demand on textile related technologies.Signifying the model business settingshowcasing themost advancedconceptionsandproduction lines toserve theprosperingtextile markets within the African continent,STITCH & TEX EXPO - AFRO EDITIONcreates irreplaceable opportunities for theworld’s key technology makers to expandtheir business reach in one of the hottestoccupational spots all across the world.Within STITCH & TEX EXPO - AFROEDITION, themost in-demand technologies,state-of-the-art machinery, and top trendsfromthetextileindustriessectorareunitedinoneplace,whereexhibitorswillgetassociatedwith the most prominent trade buyers andtop manufacturers from the entire Africancontinent.Strengtheningbusinessesateverynicheandsize;STITCH&TEXEXPO-AFROEDITIONis incontrovertiblythemostprestigiouseventthat convenes theentire textile technologiescommunityontheinternational,regionalandlocal levels providing the ultimate businessvenue for industry leaders to network withpeers, share insights, launch technologiesand explore trading opportunities worthmillions of dollars.STITCH & TEX EXPO - AFRO EDITIONwith more than 7 years of tremendoussuccess; indeedholds the command, know-how, reputationandexperience to reachoutand attract thousands of quality visitors anddecisionmakersfromthetextilemanufacturingsegment with full-purchasing power

Advantages of Exhibiting at STITCH & TEX EXPO AFRO EDITION

• Meet high quality buyers with seriouspurchasing power

• Connectwithcurrentandfuturestrategicpartners.

• GettheHighestReturnonInvestment• BrandforLargeScaleAwareness• Enter Multiple Promising Markets of an

entire continent at a Single Event• DemonstrateIndustryLeadership• GainanUpswingAbovetheCompetition• Enjoy all Year Round Promotional

Act iv i t ies• PutBusinessintheSpotlight• RaiseBusinessProfile• FreshenBusinessPerspectives• BroadenBusinessReach• Showcase and demonstrate new

techno log ies• Obtain immediateprofessionalfeedback

onnewproducts• Capitalize on reliable marketplace

opportunit ies.• Generatenewbusinessleads.• Boostexportactivities.• Alignthebrandwiththemostsuccessful

textileshowintheregion.• Reach customers not reached before

through regular promotion means.

Textile Processing TechnologiesWeavingmachinery - SpinningMachinery - KnittingMachinery -Auxiliary Equipment-TextilePrintingMachinery-DyeingMachineryWindingMachinery-CAD/CAM–CombingMachinery - Finishing Equipment - Yarn Spinners - Textile Packing Materials – RawMaterials-Chemicals&Detergents-Dyestuff–Threads-SpareParts-TextileLabellingMachinery

For info: www.afrostitchandtex.com

Visitor Profile

Exhibitor Profile

GovernmentOfficials-Investors&Businessmen-Industrialists&FactoryOwners-TradeDelegations &Foreign Missions-Trade Buyers &Garment Manufacturers- ImportersandTraders ofTextile -MachineryWholesalers&Distributors -TradeAssociations&Federations - Mechanical Engineers - Consultants - Textile Specialists – GarmentManufacturers-KnitwearManufacturers-TextileManufacturers-DesignHouses&FashionDesigners -SpecializedMedia -TextilePrintingHouses -StoreOwnersandRetailers-Trade Agents

Garment Processing TechnologiesSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery-Bleaching & Washing machinery - Garments Processing Machinery - SteamingEquipment–TestingEquipmentandControls-YarnProcessingMachinery-Cutting&layingMachines-IroningEquipment-PressingMachines-CleaningEquipment-Knives/Scissors–ClothShrinking&FusingEquipment-ClothSpreading&CuttingEquipment-ColourControlSystems-BrandTapes-Fabrics-Buttons-Labels-Needles-Trimmings-Zippers–Yarns-Closures–SpareParts–OtherAccessories.

Page 7: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

El Okda Group is a privately owned family corporation based in Egypt,located in Badr City industrial area just outside of Cairo.Our family has been in the cotton industry since the twenties of the last century. Nowadays,the group holds 3 vertically integrated factories. Happytex for fine textiles established in 1961.The dye house “dyemer” established 1998.The garment factory “Luxor Garments” established 2004. With this structure our company controlsa full supply chain starting from in house design to yarn dying, weaving and confection. We sellgrayish, finished bed linens fabric, and completely finished and packed bed linen range.Our services are fully customized. For the past 30 years, we have been successfully exporting toEurope, Canada and the Middle East serving Hotels, Hospital businesses and some majordepartment stores and brands. Our product ranges from TC 250 till TC 800 yarn dyed as well ashigh thread count and Jacquard fabrics made from 100% Egyptian Cotton .

[email protected]

Page 8: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

08 www.khoyout.com | June 2019 | ITMA Special Edition

rebuilding the cotton industry UndertheeffortstoupgradeandmodernizetheEgyptiancottonindustry,theGovernmentdecidedtoupgradetextileproductionmachinerytorenovateandboostthesector.Weaving,ginningandspinningfactorieshadunfortunatelystoppedhandlingtheproductionofextra-longstaplecotton,sincetheyonlyoperatethemanufacturingofimportedshort-staplecottonbecauseofmachineryoutwear.Accordingly,theupgradinginitiativewillreplacetheseobsoletemachineswithstate-of-the-artonesforoptimumproduction.Someofthemachinesintheginningfactoriesdatebackto1878.TheModernizationprocesswillincludemergingsomecottonplants,withtheaimofincreasingproductionbyfourfoldsinthecomingyears.Fundstofinancetheprojectwillcomefromsellingandrentingtextileindustryassets.

capMas: 45.1% increase in cotton exports in the first Quarter of 2018/2019TheCentralAgencyforPublicMobilizationandStatistics(CAPMAS)announcedthatEgyptiancottonexportsduringtheperiodbetweenSeptemberandNovember2018reached128,300metricquintalscomparedtothesameperiodtheyearbefore,representingaround45.1%increase.TheAgencystatedinitsquarterlynewsletterforthefirstquarterofthe2018-2019agriculturalyearthatthetotalconsumptionratesofdomesticcottonreached25,700metricquintals,comparedto5,440metricquintalsduringthesameperiodofthe

previousyear,recordingadecreaseof42.2%duetotheproductionsuspensionbysome

textilefactories.

First Artificial Turf factory in egyptMilitaryProductionMinister,Mr.MohamedSaaedElAssartogetherwithYouthandSportsMinister,Mr.AshrafSobhiinauguratedafactoryformanufacturingartificialturfcalled“CAPTEX”inFebruary2019.ThiswillbethefirstfactoryformanufacturingartificialturfintheMiddleEastandAfrica.CAPTEXSyntheticTurfwasestablishedwiththegoaltobecomethecapitalofsyntheticturfmanufacturinginEgyptandMENAregion.CAPTEXisastrategicpartnerofaGermansportsturfmanufacturerandworld-renownedindustryleader,PolytanGmbH,whichisaBurgheim,Germany-basedmanufacturerandinstallerofsyntheticsportsurfaces,includingrunningtracksandsyntheticturf.Asaresultofthispartnership,testedandcertifiedpremiumsyntheticturfproductsfrommultipleinternationalorganizationswillbemanufacturedinEgypt.

egypt signs contracts Worth10.5 Billion le to supply equipment to spinning & Weaving public companiesEgyptianMinisterofPublicAffairs,Mr.HishamTawfikrevealedthatthedevelopmentplanofthetextilesectorwillcost10.5BillionLE.HeclarifiedthatthenewmachinerywillarriveinEgyptin2020asplannedtorevivethesector.Thiswillbefollowedbyanothershipmentthatwillarrivetenmonthslater.Hepointedoutthatthetextileindustryisexpectedtoreturntoitsfullcapacityintwoandahalfyears.Thiswillentailthereorganizationof23publiccompaniesinthesector.InJanuary2019,theGeneralAuthorityforInvestmentandFreeZones(GAFI)signedthecontractforestablishingthefirsttextilecityintheFreeZoneTextileParkinElMinyaGovernorate.

Moody’s upgrades egypt’s rating to B2

Moody’s,RatingAgencyhasupgradedEgypt’ssovereignratingtoB2,asaresultoftheongoingeconomicreforms,whichhelpedimproveitsfiscalpositionandboostthe

country’seconomicgrowth.Moody’supgradedthelong-termforeignandlocalcurrencyissuerratingsofEgypttoB2fromB3.Theoutlookhasbeenchangedfrom

positivetostable.Thedecisionwasbasedon“Moody’sexpectationthatongoingfiscalandeconomicreformswillsupportagradual

butsteadyimprovementinEgypt’sfiscalmetricsandraisereal

GDPgrowth”.

Moody’s decision was

based on fiscal and economic

reforms

flash neWs

Page 9: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment
Page 10: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

10 www.khoyout.com | June 2019 | ITMA Special Edition

A comprehensive modernization strategy has been executed by theEgyptian Government to develop the textile industry for both, publicand private sectors. Based on the strategy, the public sector plans tomodernizethestate-ownedtextilesegmentwithanallocatedinvestmentof around 24 billion Egyptian Pounds over the course of three yearsstarting2019.Thisbudgetwillbefinancedthroughsellingunusedassets.Thiswillbecarriedoutbymerging24publicfactoriestoonlytenstate-of-the-artfactories,whilealsomergingthecurrent24cottonginningfactoriestoonly14upandrunningfacilities.Asfortheprivatesector,thereareplanstoestablishatrainingcenterforworkerstoenhancetheirskillsandexpandtheirexposure,opennewmarketsandactivatetheexportsupportfund.Themodernizationstrategywill encompassevery individualandeveryentity’seffortstohelpthetextilesectorboomandflourishrangingfromtherolesofalltheministriestothephasesofproduction,startingfromcottongrowing to developing a high quality final product. Themodernizationplanwill also includemanagementof research companies thatwill bededicated tostudyingmarketneeds,whilecomplyingwith internationalquality standards. Accordingly, this will include replacing obsoletemachines in tensofstate-ownedcottonweaving,ginningandspinningfactorieswithnewupdatedmachinerytooptimizeproduction.Therearealsosuggestionstotrainworkers,whoreceivedhighereducationdegreesduring their course of work in public sector companies on the newlypurchasedmachinery for improving productivity.TheMinisterofPublicBusinessSector,Mr.HeshamTawfikhashighlightedtheimportanceandsignificanceofthetextilesector,asitemploysaroundquarterofthepopulationinEgypt.Theministerassuredthatthetargetistotransformpubliccompaniestoprofitableentitiesratherthanlosingones.Moreover,theexecutionoftheplantargetsachievingthreebillionEgyptianPoundsprofitovertheupcomingfouryears,inopposetolossesof2.7billionEgyptianPounds.Fortunately,theGovernmenthasalreadysignedcontractswiththesumof10.5billionEgyptianPoundswithseveralinternationalcompaniesforimportingupdatedmachinery.

Furthermore, the modernization process will include merging somecottonplants,with theaimof increasingproductionby four-folds in thecomingyears.Thefundsneededtofinancetheprojectareprojectedtocomefromthesalesofunneededandoutdatedtextile industryassets.Consequently, theMinistryhasalreadybegunevaluatingabignumberofitslandplots,throughgovernmentalassessmentbodiesandlegitimateofficial channels, inpreparation for the sales toprovide thenecessaryfundingtoimplementthemodernizationplanforthecompanies.Thisfundwillalsobeusedtosettlependingdebtstoseveralgovernmentalbodies.Accordingtothestudy,thepublicsector’sportfoliohas247piecesoflandexceedingintotaltwomillionsquaremetersofindustrialunutilizedareas.Lastly, thestrategyaimstoachieveasignificant leap in theproductioncapacitywith a target production of 188 thousand tons of yarn yearlycompared to37 thousand tons;198millionmetersof fabric insteadof50millionmetersandfinally,50millionpiecesofgarmentsinsteadof8million pieces.

The egypTian governMenT iMpleMenTs a ModernizaTion sTraTegy To creaTe a proper invesTMenT cliMaTeDue to the importance of the textile industry in Egypt and the

value it stands for, the Government decided to take up efforts to revive the industry and place it on the international map by holistically studying the textile manufacturing circumstances. These efforts will be exerted to end the problems facing the industry to capitalize on its fullest potential. As a result of this, plans were put in place to expand and develop the operation methodology for a productive, dynamic and safe environment that encourages current and future investments. Furthermore, the plans included a component on improving the quality of the end-product to smoothly penetrate and compete in new international markets.

Page 11: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

11www.khoyout.com | June 2019 | ITMA Special Edition

17established Investment Areas

20142018

Free Trade Zones Before2014,themostrecentfreeinvestmentzonewasestablishedin2005,wherethelastinvestmentdistrictwasfoundedin2009.Between 2014 and 2018, the Governmenthas increased foreign direct investmentthrough signing agreements that were worth27billionUSD.225agreementsweresignedto finance development projects; in additionto partneringwith 30African,MiddleEasternand international entities for business tradingcollaborations.ThishadrewardinglyimpactedForeignDirect

Investmentduringthisperiodtoreach29billionUSD versus 27 and the establishment of 11freetradezones,thatyielded644millionUSDandincreasedexportsto710millionUSD,andtheestablishmentof17investmentzoneswiththecostof57.5billionUSDinequity.Italsoresulted in developing eight Investor ServiceCenters in a number of cities to promptlyrespond to any inquiries, where eight newcenters are currently under establishment.

Egyptian Investment LawThestatehaseffectivelyrestructuredanumber

oflegislativeInvestmentLawstoenhancetheEgyptian investment climate to attract newinvestorsandbuildstronginvestors’relations.Newlawswereissued,inparticularInvestmentLawNo.72fortheyear2017andInvestmentLaw No. 4 for the year 2018, which mainlyfocused on the revision of the oldCorporateLawNo.159fortheyear1981.Respectively,investment disputes were settled in 2018,withplacingaspecifictimeframetocompletesettling427pendingdisputes.Oneofthemostimportantreformsthatwascarriedoutwasthelaunchofonlinepaymentplatform,whereanelectronic service system for Investors wascreatedforonlinetransfersandtheactivationof the electronic signature. Furthermore, aninvestmentmap was put in place to supportthe new investment climate; which includeda listingof available investmentopportunitiesin different sectors that mounted to 2400investment opportunities

June 30th, 2020ByJune2020, themain target is toestablish26 new investment areas to reach 42 newzones. It was also decided to establish nineInvestors’ServiceCentersbytheendofJune2020,withatotalof17newInvestors’ServiceCentersall inall.

a gliMpse on The invesTMenT cliMaTe in egypTRemarkable positive transformation of the investment climate in Egypt has successfully taken place between June 2014 and December 2018. Before 2014, Foreign Direct Investment (FDI) in Egypt had reached 14.1 billion USD and this resulted in establishing 26,662 companies. Exports of Egyptian industrial free trade zones did not exceed 387.714 million dollars and 574,888 million dollars respectively. These humble figures were the automatic result of the unavailability of a proper legislative environment that would attract investors, the complexity of investor services and the lack of up-to-date technology.

The total target of new investment areas by June 2020 42

New Zones

26New Investment Areas

9Investors Service Centers

June2020

June2020

Page 12: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

12 www.khoyout.com | June 2019 | ITMA Special Edition

The Textile Park is developed by a group of investors lead by therenowned businessman Mohamed Kassem. The textile park will belocatedat225kmSouthofCairoinUpperEgypt,namelyinElMinyaGovernorate.OneofthemostimportantadvantagesoftheparkisthatitslocationenablesittohaveeasyaccesstoportsontheRedandtheMediterranean seas, as well as international and domestic airports.AboveallElMinyahasapopulationof 5.4millionoutofwhich35%representyoung individualsbetween theagesof18-30;making itanideal location for thepark.Mr.Kassemhasmentionedthatstudieshaveshownlackoftheupstreamtextileinvestments,notonlyinEgypt,butinAfricaingeneral.Therefore,itwascruciallyimportanttocomeupwiththeideaoftheTextileParktobemainlydedicatedforinvestmentsinspinning,weaving,dyeingandfinishingindustries,asafundamentalmethodtosupportsupplychainandlogisticsforapparelandhometextiles.•WhatistheprogressontheTextileParkandwhenwillitbeofficially launched?

Theproject isprogressingatagoodpace.Weareexpecting tostartdelivering the land topotential investorsby theendof2019.•Istheparkonlydedicatedtoforeigninvestorsorlocalonesaswell?

Theparkwillbeavailable forboth localand international investors tobenefit fromand enhance their businesses.• Why was El Minya Governorate specifically chosen for the

geographical location of the Textile Park?Unfortunately, itwasclearlyevident thatwe lackupstream industries,notonlyinEgyptbutinthewholecontinentofAfricaaswell.Therefore,itwasonlynaturaltopromoteinvestmentinthespinningweaving,dyeingandfinishingindustriestosupportthedownstreamofsupplychainandlogisticsofgarmentandhometextile.• Who will be the target sub-sectors to operate in the Park? All segments of the industry are more than welcomed to operate;however weaving, dyeing & finishing are the priority.• What is the size of the Textile Park and what are the facilities

provided for factories? The size of the Park is 1.3 million square meters. It will be anenvironmentally friendlyparkforsustainability.TheParkoffersawidearray of benefits among which is, Zero Discharge Water TreatmentFacility, andOne-Stop-Shop for all required licenses and permits. Inadditiontothis,anR&Dandtrainingcenterwillalsobeestablishedtooptimizethebusinessperformanceandenhanceproductivity.Aboveall,it isa “PublicFreeZone”,whichmeansallprojectswillenjoy lifetimeduty-free and tax-free benefits.

• What are the incentives for factories to operate in the Textile Park?

ThisPark is thefirstEgyptian“PublicFreeZone”tobedevelopedbytheprivatesector.Allprojectswillenjoyduty-freeandtax-freebenefits.Moreover,ElMinyahasahugeandcompetitivelaborforcethatfactoriescantapinto.• Is there any news on investors signed contracts? Notyet,butweareinseriousdiscussionswithfewpotentialinvestors.• Destination Africa has proved itself year after year and has

placed itself on the international map as one of the most important sourcing events in Africa. Being the commissioner for Destination Africa, what are your thoughts about that? What should be look for in the upcoming exhibition in November 2019?

Indeed,DestinationAfricahasbecomeapioneerandrenownedtextileexhibition in theAfrican content.This year, the exhibitionwill feature“OriginAfrica”,which is theoldest textileshow inAfrica.OriginAfricawillbejoiningforcesandwillinCairoinparallelwithDestinationAfrica.•Finally, howdo you see the Egyptian textile sector evolvingandwhatdoyouenvisiontheindustryovertheupcomingfiveyears?

The landscapeofour industry isdynamicallychanging,which isverypromising. Since the floatation of the Egyptian pound in November2016,Egyptianexportshadstartedtoregaintheirmomentum.Weseea renewed interest inEgyptboth from internationalbrandchainsandglobalretailers.WealsoexpecttoseeaseriousflowofForeignDirectInvestment(FDI)comingourwayinthenextfewyears.Thankstothelong-awaitedeconomicreformprogramthatthecountryhadwitnessedlately..

FormoredetailsonAlMinyaTextilePark:[email protected]

firsT TexTile parkTo Be developedBy The privaTesecTor

Mohamed kassem

Over the past few years, the textile industry in Egypt had witnessed an interesting turnover with quick and continuous progress on both the governmental level, which has been manifested in the restructuring of public sector factories, and on the private sector level with the launch of several investments. One of the most important happenings that took place as part of these restructuring efforts is founding and developing the first textile park by the Egyptian private sector and making it available for both local and international investors. This park will enjoy great facilitations, including tax exemptions and the availability of workforce to enhance the textile industry.

Page 13: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

13www.khoyout.com | June 2019 | ITMA Special Edition

• What is the range of products that the company manufactures?

WeareagroupofholdingcompaniesthatwerelaunchedinTurkeyunderthenameof“YesimGroup” in 1983. We manufacture differentproducts in different countries to capitalizeon the available resources in each countrytoensureahighqualityendproduct.Here inEgyptforexample,weoperateunderthenameof“JadeTextileEgypt”,wherewemanufacturecotton and polyester sports’ apparel, likeT-shirts, sweatshirts and sweatpants forinternational chains such as, Nike and underArmour.• What encouraged you to open up a

factory in Egypt? What investment laws attracted that business opportunity?

WeparticularlychoseEgypttofacilitateservingour customers in the American market in amore competitive way. In 2008, we took thedecisionandopenedourfirstfacilityinEgyptinAlexandria.WewereinspiredandencouragedbytherichheritagethatEgypthasinthetextilesector, inaddition to theavailabilityofhumanresources. Moreover, we wanted to benefitfromthecountry’staxadvantagelaws,culturalsimilaritiesanditsproximitytoTurkey.WeareverycontentbythegreatsupportthatthestateofEgypthadprovidedusuntil now. After11yearsof operating inEgypt, I can confidentlysaythatopeningafacilityinEgypthasbeena

right choice.• What is your production

capacity in Egypt? As Jade Textile Egypt, weensureanaccretionvaluetotheEgyptianeconomyinallourplantswith5200employees and dailyproductionrateofaround100.000 pieces in total.Weareproudlythesecondbiggest exporter of ready-to-wear clothing in Egypt.For the upcoming three years,we aim at increasing our exports’valuebythreefoldsandalsoincreasingourmanpower to 10.000 employees.• Where are the factories located in Egypt? Jade started its ready-to-wear productionunderthenameof“JadeApparelIndustries”inAlexandriain2008.Later,itopeneditssecondfactory in the same location also in 2008.Byestablishinganewplant inCairowith thenameof “JadeTextileEgypt”,wesignificantlyincreasedourproductioncapacity.Inadditionto these facilities, inMarch2019,weopeneda new factory in the Governorate of Ismailiaunderthename“JadeTextileIsmailia”.Weareplanningtostartalltheproductionprocesses,which include knitting, dyeing and ready-to-wear production under the same roof for

Yesim Textile is a Turkish company that was founded in 1983 and based in Borsa. It is considered to be one of the largest fully integrated manufacturer brands. It manufactures its wide range of products, where all the processes that involve product development and production are carried out under one roof. It is a leading producer of high quality knitted goods that are exported to the US and a number of European retailers. In addition to this, Yesim supplies international renowned brands, such as Nike (since 2005), Zara, Pull & Bear, Bershka, Esprit, Calzedonia, Tchibo and Tommy Hilfiger. Yesim Textile has around 3000 employees, who primarily work in the company’s apparel and home textile production with the capacity of manufacturing 50 tons of knitted goods, 60 tons of dyed products, 100,000 meters of printed fabric, 150,000 pieces of garments and 100,000 pieces of home textiles. Apart from its main production facility in Turkey, the company has subcontracted production companies in other countries such as Moldova and Egypt and opened up factories. Yesim owns one factory in Egypt in Alexandria since 2008 and another one in Cairo since 2009. In March 2019, the company opened its third owned factory in Egypt in Ismailia, Governorate. All this makes Yesim one of the most important key players in the investment scene in the Egyptian textile sector.

yesiM TexTilea proMinenT and key player Turkish invesTor in The egypTian TexTile secTor

efficiency.• What is the size of the new factory in

Ismailia and the value of the investment behind it?

In Ismailia, we are planning to have 50 tonsof fabric, manufacture 20.000 pieces ofhoodies and 60.000 pieces of T-Shirts perday.Ourmanpowerisestimatedtohave3500employeesworking in 105.000 squaremeterarea. This factory will be our first facility inEgypt,wherewewillstartproducingourownmaterials.Untilthisday,we’vebeenimportingfabricfromourmothercompanyinTurkey,butoncewestart fullyoperatingour fabricmill inIsmailia, we won’t be importing from Turkeyanymore.• When will the company be fully operating

in Egypt?We launchedour factory in Ismailia inMarch2019, where we started with cut and sewoperation as well. By June 2019, we will befully operating with our knitting and printingsections.Whileweareproducing,wealwaysaimatdoingourbestforamorelivableworldtograntouremployeesadecentqualityoflife,wheretheylivewithdignityandhaveaccesstobasichumanneeds,tohelpthemcomfortablygrowanddevelop.Basedonthat,ourplantinIsmailiaincludesakindergartenwithacapacityof300kidswhereweprovidefreebabysittingand teaching services to the children of ouremployees. Wealso provide our employeeswith recreational space; where there arefootball & basketball fields, mosque, watertreatment facility and many more.

• Will you rely mainly on Turkish employees as your manpower?

How many workers are expected for the operation and will they

receive trainings to match the quality needs?There isagreatandskilledworkforce in Egypt thatwe want to fully utilize andbenefit from. Accordingly,we employed Egyptianworkers at the factory.As all group companies, we

believe in the importance ofproviding trainings to our staff

members. We promote sustainability;it’sactuallyaveryimportantcornerstoneinourcompany’sculture.Asaresultofthat,wehostan internal academy, where our employersreceive trainings on various topics.• How do you see the future of the knitting

industry in Egypt?Because of the tax advantages that theEuropeanandAmericanmarketbenefit from,which is supported by the state of Egypt,this industry will attract a great number ofinvestors to Egypt. Besides that, there is agreatworkforcewith its90millionpopulation.WebelievethatEgyptisdestinedtoaboominggrowthinitseconomyandwearenothingbutthrilled tobepartof thisandbeinganaddedvalue to this great country.

Page 14: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

14 www.khoyout.com | June 2019 | ITMA Special Edition

Amin referred to the very first edition ofDestination Africa that took place in 2016,highlighting how the textile exhibition cameto life. “When therewasaprofounddesirefor having a textile platform to highlight theindustry potentials in Egypt and Africa, theidea was founded”, mentionsAmin. Egyptwasidentifiedtobethestartingpointforsuchan event.

The Idea behind Destination AfricaBuyers are always in search all around theworld for the best prices and the highestqualityfortheirproductselection.Therefore,we came up with the idea of organizing aglobaleventtopromotebusinesspotentialinAfrica. The dreamwas to have buyers andAfrican manufacturers under one roof tofacilitatebusinessmeetingsandagreementsand consequently shed a light on missedbusiness opportunities in the Africancontinent.

Nature of the MarketEgyptisblessedwithmanyfactors,suchasitsrichheritage,premiumqualityand relativelycompetitive workforce, which enhancesits potential for business opportunities.However, thesefactorsontheirownarenotenough to put Egypt on the internationaltradingmap. Therefore, thedireneed foraglobal exhibition, suchasDestinationAfricaemergedandwithhardworkanddedication,the vision was translated into a successfulglobal exhibition that has developed overthe years. This will in turn make Egypt astrongcompetitorintheinternationalmarket,not only on the exporting level but also onattracting Foreign Direct Investments. Allthesefactorscombinedwerethemaindrivingforce behind the introduction of DestinationAfrica business platform, which gives anaccessibleandeasyaccesstoEgyptianand

African manufacturers.ThefirsteditionofDestinationAfricawasheldin2016.Therewere70exhibitorsfromEgyptand Africa on a 950 square meter space.160 international buyers representing thebiggestbrandsworldwidewerepresentinthesourcingevent.Theexhibition radiatedwithteamspirit,sinceallparticipatingentitieswereworking as one entity. The success of theeventwasreflectedonthebiggerparticipationin the third edition of the exhibition, where110exhibitorsand300buyersparticipatedina1600squaremetersdisplay.

Success IndicatorsThefirsteditionofDestinationAfricaechoedwithsuccessandthiswaslucrativelyreflectedin the exhibition’s success indications. Forexample,oneofthemaincontributorstothesuccess of the second and third editions oftheexhibitionwastherecognizableincreasein the exhibiting area, which gave newfactories and buyers a golden opportunityto join the exhibition. One of the mainsuccess indicators for Destination Africa isits presence in other reputable exhibitionsabroad. For example if you visit “PremiereVision” exhibition in France, you will find astandforDestinationAfricaandthesamealsoin“SourcingofMagic”inLasVegas.Itgoes

withoutsayingthatitiscruciallyimportantforour team tobeavailable inotherprominentinternational exhibitions for exposure. Inadditiontothis,itgivesabeneficialgatewayto select and recruit exhibitors and buyersfor Destination Africa. There are specificconditions and specifications for whomto invite for the exhibition; among whichis the size of investment, orders placedyearly, number of employees and brand’srepresentation. Theseare themain criteriafor selecting participating buyers.

Exhibitor SelectionTheapprovaloftheselectionofexhibitorsiscarriedoutbycollectiveeffortfromExpoLink,Export Council and Industry Experts.The most basic requirement for selectingexhibitorsisthattheexhibitorisaregisteredmemberwithintheexportcouncil;soatleastthere is an export business experience toaccelerate the process.

Next EditionIntheupcomingsession,40%oftheexhibitingspace has already been sold. 400 buyerscompared to 160 buyers from the previousyearwill participate.

Message for Importers and ExportersAmin confirmed that besides Egypt’s longhistory in the textile industry, there areother advantages along all the sub-sectorsof the industry thatpromoteEgypt, suchasquality standards, pricing and proximity tointernationalmarkets,whichmakesshippingfasterandcheaper.Thisinturnallowshigherreturnsthanwhenworkingwithothermarkets.Amin also emphasized the availability oftrained workforce and engineers, togetherwith a set of programs that are used fortraining and developing Egyptian workers’production skills.

400 Buyers in the 4th edition

shady aMin; desTinaTion africa is The ulTiMaTe sourcing evenT in The conTinenT shoWcasing Top egypTian and african TexTiles exporTersDestination Africa is an annual international pan-African B2B sourcing event for textile industries in Egypt. It brings together African Textile manufacturers under one roof to facilitate presenting what the industry has to offer to textile and apparel. Destination Africa has positively positioned itself on the international exhibitions’ map with the aim of promoting premium quality Egyptian and African exports. The exhibition has successfully managed to create a full-fledged business platform for Egyptian and African textiles; which resulted in fruitful trade agreements with buyers. The exhibition is organized by the Egyptian Exporters Association (ExpoLink), in cooperation with the Textile, Apparel and Home Textiles Export Council. In order to give you a comprehensive overview and detailed information on Destination Africa 2019, an interview was held with Shady Amin, ExpoLink’s Executive Director.

Page 15: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

9 -10 -11 November 2019Royal Maxim Palace Kempinski

Cairo, Egypt

The New Frontier of the World’s Sourcing Destination for The Textile,

Apparel & Home textiles in Africa!

Phone: (+20) 2527 1010, Ext: 337 - 178Exhibit: [email protected]: [email protected]: www.destination-africa.org

REGISTER NOW to qualify and be part of the premiere sourcing event of Africa

Page 16: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

16 www.khoyout.com | June 2019 | ITMA Special Edition

# Sector 2017 2018 % growth1 Apparel 29 52 79%2 Textiles 12 15 25%3 HomeTextile 5 6 20%4 RisingStars 12 13 20%5 Regional 14 20 43%

Total 72 106 47%

desTinaTion africa 2019 - TheNewFrontierExhibitors division by country

2016, 2017 vs 2018 local visitors scale

Attended buyers per sector All attended buyers per profession

Participating manufacturers in 2017 Vs 2018

10(4%)

11(5%)

10(40%)

Other:19(8%)

Apparel:148(59%)

HTEC:29(11%)

TEC:55(22%)

88(38%)

43(19%)

70(30%)

ExecutiveDirector-GeneralManager/Director

CEO,CFO,Chairman,Senior/VicePresident,President,BoardMember,Owner

Sourcing,Purchasing&Production/MerchandisingManager

Sales,Marketing,Account&CommercialManagers-Costing&PricingDirector

Buyer

Designer-Editor-Stylist

InternationalBuyers

Page 17: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

17www.khoyout.com | June 2019 | ITMA Special Edition

• Please provide a short description of your company/products and your sales and marketing approach?

(ESW) EGYPTIAN SPINNING &WEAVING CO., is a prime producerandexporterof100%Egyptiancotton&100%USPIMAyarnsofcountrangeNe16toNe180(ring-spun&compact“contamination controlled”) single,plied & gassed for weaving, knitting&sewingonpaperconeordyecone4º20/tube0º.Theplanthasacapacityof 71,000 spindles. ESW is a privatecompany belonging to one of theleadinggroups in the textileandyarnsector in Egypt.• Where are your export markets

and how has your participation at ITMA helped your business to grow?

OurmainmarketsaretheEU,Turkey,FarEast&USA.ThelastITMAinMilanprovided wider exposure for us. Wewereabletomeetmorenewpotentialcustomers from these markets. In

additionwemade new contacts fromother markets.• Which buyer profile did you meet

at ITMA? Were you looking for agents?

We met functional and technicalfabricsmanufacturers.Wealsolookedfor reliable agents, especially withinthe developed markets.• As ITMA offers an end-to-

end solutions platform, it has enabled textile and garment manufacturers to explore new technologies and materials under one roof. Do you find this fully integrated approach useful for your participation and for buyers?

We think it’s useful for all textileparties. In today’s complex andglobalised business environment,there’s need to look at new ideas,trends, developments, collaboration.Alotofbrandsandmanufacturersarelooking at integrated solutions so aplatformsuchas ITMA is veryusefulfor the industry.• In your opinion, is exhibiting

along technology manufacturers a value-add to your participation in ITMA?

We think it is an excellent idea asthe relationship among technologyproviders, fabric and raw materialproducers and buyers is synergistic.• Do you see the inclusion of

fabrics in the ITMA fibre and yarn sector as an advantage?

ItisapositivemoveforITMAtoexpandits raw material sector to includefabrics. With this comprehensiveprofile,andalargergroupofexhibitor,buyerswill find itmoreworthwhile tosource at ITMA.• What are the advantages of

participating in ITMA versus other textile and garment related exhibit ions?

First, ITMA has a strong reputation,strict participation criteria and acomprehensive exhibit profile fromevery part of the textile and garmentproductionvaluechain.Therefore,itisaone-stopandidealsourcingplatform.Thebuyerswhovisit ITMAareworldexporters and major manufacturers,soexhibitorslikeuscanmeettoptiercustomers from all over the world.• Would you recommend ITMA

to Egyptian fibre and yarn manufacturers as a key exhibition to be included in their exhibition calendar?

Yes,wewouldasITMAtypicallyattractbuyerscomeover140countries.Thismeansthatourproductsareexposedto an international audience andexpand our markets.• Any other benefits or comments

on ITMA or your participation?ITMA is only held every four years,so it is important to be present atthe exhibition in order to expose ourproductsatan international level,winnewcustomersandgetnewcontacts.

Walid ragihiTMa is The BesT Way To expand our MarkeTs

RAgIh: We met functional and technical fabrics manufacturers. We also looked for reliable agents, especially within the developed markets

Page 18: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

18 www.khoyout.com | June 2019 | ITMA Special Edition

neW prospecTs for sourcing & value addiTion in african TexTile & apparel indusTry

5 cotton producing basins in Africa with 23/rd of cotton originating in West Africa

Africa’s textile & clothing export trade witnessed a slowdown in 2016.

Powered by

Page 19: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

19www.khoyout.com | June 2019 | ITMA Special Edition

3 North African countries account for 70% of total apparel exports from Africa

Africa’s market share in the US imports has been stagnant around 2.5% with further potential to grow to leverage preferential market access

Page 20: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

20 www.khoyout.com | June 2019 | ITMA Special Edition

apparel and TexTiles secTors in egypTEgypt may be best known for its impressive pyramids and colorful history, but it is also known as the most attractive African country for investment and one of the most developed in the Middle East/Africa, with a gross domestic product of $298 billion in 2018 achieving 5.3% growth, projected to be 5.9% in 2019. Like many

larger countries, the economy is dominated by the service sector (54 percent), and agricultural sector (12 percent), but it is also known for its industrial sector (34 percent) that achieved 6.3% growth in 2018 & provided significant employment contributed to reach the lowest level of unemployment rate since 2011.

The apparel sector in EgyptThe apparel sector plays an extremelyimportant role in theEgyptianeconomyandit has seen a rebound and a new spurt ofgrowth in recent years.Egypthasmorethan2,500apparelfactoriesand it is considered to be the first sector interms of labor force, which recorded 1.5million workers, 50 percent of which arewomen.With about $1.6 billion exports in 2018, theapparelsectoristhecountry’smostimportantindustrialsector; it represents6.5percentoftotal non-petroleum exports.Apparel exports reached $1.604 billion for2018 compared to $1.459 billion in 2017,achieving a rise of 10 percent of which50 percent of the apparel production was

exportedtotheU.S.and30percenttoEurope.Egyptian apparel sector enjoying many advantages• International Trade Agreements: TheU.S. is themainexportdestination for theEgyptianapparelindustry.Apparelcreatedwithin the Egyptian Qualified Industrial(QIZ)ZonearedutyfreetotheU.S.Underthe protocol, goods made in EgyptianQIZs can use fabric imported from thirdcountries and remaineligible for duty-freeentry into the U.S. market, provided 35%oftheirvalueisaddedinEgypt,includingaminimumof10.5%ofIsraelicontent.CostsincurredintheU.S.alsocounttowardsthe35% threshold.Egyptalsoenjoysduty-freemarketaccesstotheEUwithadoubletransformationrule

oforigin.Withitsfabricbaseandsourcingproximity toTurkey,exports to theEUarelikelytoincrease

• Vertical integration and a developed infrastructure: Egypt’s textiles andclothingsectoristhemostintegratedontheAfricancontinent.Thecountryoffersawell-developed infrastructure and is investingmore than $15 billion in roads, electricitynetworks and irrigation projects, including15marineports.Egypt is also the largestproducer of Extra-long- staple cotton inAfrica

• Proximity: Egypt offers shorter routesto the U.S. than Asian ports (12 dayscompared to over a month). Egypt alsoprovideseasyaccesstomarketsinEuropeand Africa.Egypt is an intercontinental

Page 21: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

21www.khoyout.com | June 2019 | ITMA Special Edition

country, with multiple ports and facilitiesgivingitastrategicadvantageforexportstothe U.S. and the EU.

• Egyptian Apparel Factories: Egypt is asourcinghubfora largevarietyofapparelproducts.Theregionoffersethical,sociallycompliantfactorieswithexportexperience.The supply chain is vertically integrated.ManycompaniesarecertifiedbyWrap,ISOand OEKO-TEX.

• Competitive factor costs:Egypt offers alarge, cost-effective, skilled labour force.LaborcostsarelowinEgypt,withminimumlabor wages of $115, compared tocompetitorslikeChina,Cambodia,India,orVietnam.Electricitycostsaround7centsakilowatt-hour compared to three to four times thatamount inChina.

• Well Developed Infrastructure: Egyptoffers well-developed infrastructure andcontinues to invest in upgrades, includinginvestments of more than US$ 15 Billioninroads,electricitynetworksandirrigationprojects with 15 marine ports.

• Business Climate: Egypt is makingprogress with economic reforms and is“openforbusiness”,ithasmaintainedalotof political, social and economic stabilityaccording to rating agencies, internationalinstitutions.S&P revised Egypt’s Sovereign CreditOutlook up to stable then positive inNov.2016&2017 and Upgraded Egypt’sCredit Rating to “B” In May 2018.FitchRatingsAffirmsEgypt’sCreditRatingat “B” with a Positive Outlook in August2018.

• Policy Initiatives: The government isworkingonmultiplepolicyinitiativestoHelpDriveApparelSectorGrowth.InMay2017,theMinistryof investment issued theNewEgyptian Investment Law No. 72 of theyear 2017, this lawattracted investors fortheincentives,guarantees,facilitationsandadvantages provided for in it.

• In November 2017, the new IndustrialLicensesLawwasissuedbytheMinistryofIndustryandTrade,whichhasbeenreflectedintheinvestor’stransactionswiththeState.Thelawcontributestoanintegratedreformtoraisethecompetitivenessoftheindustry.

1.Shortening the time required to issueindustrial licenses from 634 days to oneweek for low risk projects.

2.Shorteningtheperiodforhighriskindustriestoonemonth.

3.Reductionofinternalproceduralprocessesfrom154to19procedures.

4.One of the most important advantagesachieved by the law is to deal with themanufacturer and investor with one handis the Industrial Development Authority -oneofthebodiesoftheMinistryofIndustryandTradeinsteadof11parties,whichwasa kind of bureaucratic constraints facingmanufacturers.

5.The General Authority for IndustrialDevelopment issued 7,500 permits andoperatinglicensesforfactories,inadditiontoissuingbuildingpermitsforthefirsttimeafter issuance of the Industrial LicensingLaw and its executive regulations.

The Textile Sector .. Rising Present & Promising Future With evidence of textile industry emergingin Ancient Egypt since 5500 BC; Egyptiantextile industry has been geared to be amajorsupplierofprimary textilematerials tothe garment, home textiles manufacturersand many other applications nationally andworldwide.In 2016; the textile sector was among thefive industries selected byMinistry ofTrade& Industry to be the backbone of Egyptianeconomy.Inconformitywiththe“SustainableDevelopment Strategy (SDS): Egypt Vision2030” industry stakeholders are workingto achieve three main targets; deepen theindustry, rationalize imports and increase

exports.Withinthisframework;Egyptissettocomplete13 industrial complexes in 2019, accordingto H.E Minister of Trade and Industry AmrNassar.Thegovernmentaimstobuildatotalof 22 complexes by 2020. The complexeswill be completed in 12 governorates andwill have 4,300 industrial units. Currently;theministryistobeginworkonfirstphaseofa textile industry zone inSadatCityandanindustrialzone inAbuZenaima,SouthSinaigovernorate.EgyptTextilesector(fibers,yarnsandfabrics)representing3.2%ofprivatesectorproductionwithanindustrialforceofabout3000firmsand300,000 workers. Industry is dominated bytheprivatesectormainlyconstitutedofsmallandmediumsizedfirms(about75%)whereasthe technology-intensive textile productionundertakenbylarge-scalecompanies.In 2018; Egypt Textile exports achieved arise of 8% representing 4% of total non-petroleumexportsdirectedtomorethanfiftyfive markets.

“Currently; Egypt enjoys the capability to supply fibers of: flax & acrylic - yarns and sewing threads of: cotton, polyester, acrylic, flax, wool, viscose, modal,

polypropylene, nylon & lycra”

Page 22: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

22 www.khoyout.com | June 2019 | ITMA Special Edition

In terms of products; the cotton cluster (HS52) has the largest share of exports (40%),followedbynon-woven textiles (HS56)with(20%)andthentheman-madefiberproducts(HS54)whichaccounted(15%)oftotaltextileexports.TextilesFDIprojectstoEgypthasalsowitnessedan increase,especially inapparelandwovenfabricsectors.FDIsIssuedCapitalaccountfor38%oftotalinvestments2014to2018.Total numberof newprojects in2014was296,increasedto575in2018achievingmorethan90%increase.WhichindicatestheencouragingenvironmentthatEgyptcurrentlyhas.

Egyptian Superior Cotton & More Known as the “white gold” for its uniquecharacteristics; Egyptian cotton kept thepositionofthefinestnaturalfibersintheworldforitsunmatchedstrength,asoftweavewithmaximumversatility,naturalluster,emittingaveryspecialpearlyandgleaminglight.Egyptproduceabout150,000hectarescottonfiberyearly, while cotton yarn exports equals to400M$mostly toTurkeyandEUmarkets.However, with the entrance of the privatesector in recent years, synthetic filamentsyarn - like polyester & acrylic - is gainingmomentum in the market especially forexports with wide range of specs for bothweaving & knitting applications.In addition, Egypt has witnessed continuesgrowthofwoven&knittedfabricsproduction,mainlyforapparel&hometextilesindustries.Moreover; Egypt succeeded to attract newinvestments in technical and non-woventextiles fields, which created a new horizonfor sector exports adding more industriesto supply like healthcare, military wear,automotives and packaging.

Egypt, the Ideal Sourcing Destination of Fibers, Yarns & Fabrics.• Stable & Sustainable Production:recently; the government of Egypthas made concrete actions towardssustainabilityintextileproduction.In2018;H.E Minister Hisham Tawfiq announcedcomprehensive development plan for thespinning & weaving public companiesto be implemented within three years.Besides;EgyptappliedapilotprojectofBCIprogramme aiming to enhance the cottonproduction supply chain.

• Shorter Lead Times: Egypt’s uniquelocation and the well-built maritime & airfreight systems enabled it to be the linkof Africa continent to the world. ShippingtimefromEgypttoEuropeisabout(6to12Days),toUSAis(12Days)toArab&GulfCountriestakes(2to4Days)andshipmentstoNorthAfricaconsumes(10to18Days).With an approximate of 3 to 7 days forsample production;Egypt offers the ideal,faster and reliable sourcing destination.

• Duty Free Access:WiththeadvantageousFreeTradeAgreementsEgypthassigned,Egyptianproductsenjoysadutyfreeaccessto; EU countries, USA, Turkey, MenaRegion, 18African countries of COMESAand4 countries ofMERCOSUR.

• Egyptian Textile Manufacturers: Oncea successful business is dependent onthe chosen supplier; Egypt would makea perfect sourcing option. Offering widevariety of yarns and fabrics products,superiorquality,modernspinning,weaving,processing and state-of-the-art facilitiesmostly are Wrap, ISO and OEKO-TEXcertified.

• A Ready to Help Partner: More than 10

yearsago,theministryof trade&industryhasboostedtheruleofthe“ExportCouncil”assignedittofacilitate,supportandprovideinformation to all interested buyers andinvestors. EC Egypt is the focal pointbetweenTextile industry stakeholdersandoversees partners.

Egypt, with its adaptability to European standards and regulations is aiming to move into the production of more and more value added products, complete supply chain locally and regionally.

Top Exported FabricsDenim & cotton fabrics 55%Woven fabrics of synthetic yarn 21%Knitted fabrics of different types 13%

EU35%

TURKEY30%

MENA REGION

23%AFRICA10%

Egypt’s Main Textile Export Destinations

Page 23: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment

Meet Mimaki’s evolutionary dye sublimation printer –the new TS5 51800-

Bring your freshest ideas to market faster and more cost effectively than ever before with the newest member of Mimaki’s textile family.

JOIN THE EXPERIENCE

THEEVO LUTIO NO FTEXTILEPRINTING

THEEVO LUTIO NO FTEXTILEPRINTINGwww.mimakieurope.com/ textile-evolution

www.thebes-int.com

Sole Agent

Page 24: Sponsored by Co- SponsorSewing Machines & Parts – Embroidery Machinery – Garment Printing Machinery Bleaching & Washing machinery - Garments Processing Machinery - Steaming Equipment