World’s leading producer of dyed fabrics and shirts, Luthai Group is set to revolutionise Egypt’s textile and apparel sector by establishing a fully integrated supply chain. The Chinese textile company plans to construct a state-of-the-art factory on 500,000 sq m in the country in joint venture with the General Authority for Investment and Free Zones (GAFI). The project will be executed with an investment of $385 million.
The facility will cover all stages of production, from yarn manufacturing to finished garments, with a focus on leveraging advanced technology and spinning systems. Liu Deming, Global Marketing Director, Luthai Group, emphasises, Egypt’s economic stability, sustainable growth, and skilled labor force make it an ideal investment destination.
Enhancing the country’s global competitiveness, all products from Luthai’s new factory will be exported. Egypt’s favorable investment climate under its Investment Law provides substantial financial regulatory incentives to projects like Luthai’s, says Hossam Heiba, President, GAFI. The factory qualifies for the Golden License, expediting all necessary approvals for its operations.
The new factory will not only create substantial employment opportunities but also localise technology and support regional development, says Mohamed Kassem, Chairman, Egyptian Exporters Association. Foreign investments, especially from China, are reshaping global supply chains and positioning Egypt as a key player in textiles and apparel, he adds.
Egypt is also strengthening ties with Turkish companies in the textile sector. Earlier this year, Suez Canal Economic Zone (SCZONE) signed agreements with Turkey’s Eroğlu Global Holding AS to establish a jeans factory and a ready-made garments plant in Qantara West Industrial Zone. Together, these facilities will produce millions of garments annually, create thousands of jobs, and allocate significant output for export.
Adding to the momentum, Sharabati Denim is developing a production facility in Sadat City, featuring advanced spinning, weaving, and sizing capabilities. The plant will employ approximately 2,000 workers, further boosting Egypt’s role as a regional textile hub.
