EGYPT: The Governmental Textile Spinning and Weaving Companies Cease Operation
The governmental textile spinning and weaving companies ceased operation since a large number of factories had to cease operations due to the absence of cotton quantities required for operation. Eng. Fuad Abdul Aleem Hassan, Chairman of Misr Yarn and Textile Co. at Al Mahallah Al Kubra, affiliated to the Cotton and…
Egytex News Desk
Egytex
He added that the governmental companies fail to conduct these high price purchases of cotton, especially under the current obstacles topped by the companies' historical accumulated debts. The chairman of Misr Helwan Co. for Yarn and Textile asked for an immediate ban of cotton export so that various types of cotton are supplied to companies and no cease of operation recurs.
Eng. Abdul Majid Assal, Chairman of Bolivara private company of Yarn and Textile, asserted that the crisis was inevitable. Due to their huge financial capabilities, private companies could contain the crisis. For example, Bolivara Co. could store cotton quantities that guarantee the stability of operation rate until the end of next December. Assal added that Bolivara Co. plans to increase the storage of local and imported cotton in order to evade any similar future crises. He highlighted another crisis represented in the continuous rise of local and imported cotton prices, as the price of Giza 86 medium staple cotton quintal was increased by 120 LE to reach a total price of 600 LE. He added that to overcome this crisis, the government should establish a cotton balance fund through which cotton cultivators are supported to sell their cotton for appropriate prices, and companies can therefore purchase for moderate prices.
Source: Al-Alam Al-Youm Newspaper
From the Egytex news archive, first published on 28 May 2008. Figures and names are as reported at the time.
