Egypt signs deal for $100m worth of Chinese textile and apparel projects
The Suez Canal Economic Zone (SCZONE) has signed letters of interest regarding several new projects with Chinese textile and apparel companies.
SCZONE chairman El-Dien says: “These projects represent a consolidation of the strong economic relations between SCZONE and Chinese investments, especially since these projects are in the West Qantara Industrial Zone, which is a promising industrial zone on an area of 19.5 million square meters.”
The news follows a visit by SCZONE’s president to Hangzhou in Shanghai, where he met with investors and business owners from the textile and ready-made garment sector.
Last May, SCZONE’s chairman Waleid Gamal El-Dien visited China and signed a letter of interest with ready-made garment and accessories manufacturer Shanghai Shengda Company. This has now progressed into a final contract, with a $28.5m investment.
This was the first Chinese project in the West Qantara Industrial Zone, which has encouraged more Chinese apparel and textile manufacturers to work with SCZONE and establish projects in the West Qantara Industrial Zone.
SZCONE chairman El-Dien has now also announced a new dyeing, processing and textile manufacturing project with Chinese company Hengsheng Dying Zhejiang Company in the region, with an investment of $70m.
SCZONE’s chairman has also signed a letter of interest with fabric producer Shaoxing Yuding Textile Company, which plans to open a new 12,700sqm factory in the West Qantara Industrial Zone, investing $5m in the region. The new factory is expected to export 90% of its products to Europe and the US.
Shengzhou Captain Industrial & Trading, which is one of US retailer Target’s suppliers, has also signed a letter of interest with SCZONE. The company plans to manufacture spandex, polyester and elastic yarns in the region and plans to invest $5m in the project.