Egypt to build largest spinning factory in world

CAIRO – 9 July 2020: The Holding Company for Cotton, Spinning, Weaving and Garments signed a contract to establish the world's largest spinning factory at Misr Spinning and Weaving Company in El-Mahalla El-Kubra, Ministry of Public Business Sector said in a statement Thursday.

According to the statement, the factory is located on an area of ​​about 62,500 square meters, and it accommodates more than 182 thousand spinners, with an average production capacity of 30 tons / day.

The construction work of the factory takes about 14 months, at an estimated cost of about LE 780 million.

The contract was signed by Chairman of the Board of Directors of the Holding Company for Spinning and Weaving, Ahmed Mustafa, and Vice Chairman of the Board of Gamma Construction - winner of the tender - Ayman Saad.

“The plan to develop cotton and spinning and weaving companies takes about two and a half years at a cost that exceeds LE 21 billion, and includes a complete modernization in construction and machinery - which was contracted to supply from major international companies - and a comprehensive development in management, marketing and training systems,” the ministry added.

The development plan is based on increasing specialization and reducing the frequency of the same activities in more than one company, by merging 23 spinning, weaving, dyeing and processing companies into 9 companies, and merging 9 companies for cotton ginning and trade into one company dedicated to this activity. 

It clarified that  the plan aims at converting the 10companies resulting from the merger into strong entities able to compete and achieve integration among them while doubling the current production capacity by about 3 times, while the companies that will be merged in their current work as separate companies will continue until the merger process is completed, which is expected to end before the summer of 2021.