Egypt's state spinning and weaving overhaul spans seven companies as government opens door to private partners

Egypt's Deputy Prime Minister for Economic Affairs, Hussein Issa, reviewed progress on the national project to develop the spinning and weaving industry on 23 September, in a meeting with Ahmed Shaker, executive managing director of the Holding Company for Cotton, Spinning, Weaving and Clothing, El Watan News reported.

The programme covers seven subsidiaries of the holding company across more than one million square metres: Misr Spinning and Weaving in El-Mahalla El-Kubra, Misr Spinning, Weaving and Dyeing in Kafr El-Dawar, Misr Shebin El-Kom, Damietta, Daqahlia, Upper Egypt (Minya) and Misr Helwan.

Three phases

• Phase one is complete: three spinning and weaving mills and a power station at El-Mahalla.
• Phase two covers five further mills at El-Mahalla, and a new spinning mill is now operating at Shebin El-Kom.
• Phase three extends the upgrade to Kafr El-Dawar, where six mills are included, Damietta, with four mills focused on denim, and the Daqahlia, Upper Egypt and Helwan companies.

Issa said the project is a step change for the industry, aimed at maximising the added value of Egyptian cotton and making the companies competitive in regional and international markets. He added that the state is open to partnerships with the private sector to raise efficiency and returns.

What it means for Egyptian exporters

A modernised public sector able to spin and weave Egyptian cotton at scale could give garment and home-textile exporters a larger domestic source of yarn and fabric, reducing reliance on imported inputs and shortening lead times for European buyers. The dedicated denim capacity in Damietta is especially relevant for jeanswear exporters. The government's stated openness to private partners is the part to watch: management or investment partnerships in these mills could open new sourcing and joint-venture options for private Egyptian manufacturers.