Lutai Group to establish its first factory in Egypt with $385M investments

CAIRO - 16 December 2024: The General Authority for Investment and Free Zones (GAFI) announced that Lutai Group, the world’s largest producer of dyed fabrics and shirts, will establish its first factory in Egypt. The $385 million facility will span 500,000 square meters. GAFI’s CEO, Hossam Heiba, met with Lutai’s delegation to finalize plans.

 

Liu Deming, Lutai’s Global Marketing Director, confirmed the company’s goal to create a full supply chain in Egypt, from yarn production to garment manufacturing, with 100% of the output for export. This aligns with Egypt’s strategy to attract export-oriented investments.

 

Lutai will bring cutting-edge spinning technology to Egypt, showcasing the most advanced systems globally. The company, a four-time winner of China’s National Science and Technology Award, aims to boost Egypt’s competitiveness in global textile markets.

 

Liu praised Egypt’s stable economy, sustained growth, and skilled workforce, emphasizing the strong bilateral relations with China as a key factor in facilitating investments.

 

Heiba highlighted Egypt’s attractive investment climate, supported by the Investment Law and its executive regulations. He pointed to Egypt’s skilled labor force, access to over 3 billion consumers through global trade agreements, and low construction and utility costs as key advantages.

 

He confirmed Lutai’s eligibility for maximum financial and regulatory incentives under the Investment Law. The factory also qualifies for the Golden License, granting streamlined approvals for operations within 20 working days.

 

Mohamed Kassem, Chairman of the Egyptian Exporters Association (Expolink), noted the surge in foreign investments, especially from China, in Egypt’s textile and garment sectors. He attributed this to global supply chain shifts and Egypt’s economic reforms, which enhance export competitiveness and create growth opportunities.