Oriental Weavers (OW) said that it will spend LE 250 million ($46 million) to build a thread factory with a production capacity of 400,000 tons per year, as well as add to its existing woven capacity through installing seven new looms.
According to the company, the thread factory, which will be located in OW's industrial complex, will be operational by mid-2011.
The company had announced the complex in early 2008 but later postponed plans as a result of the global financial crisis, Belton Financial said in its daily market report; however, "this announcement means that the group is proceeding with its plans due to its relatively stale performance during 2009 and its positive expectations for 2010."
Oriental Weavers, the world's largest machine-woven carpet maker, has been adding to its capacity over the past few years to meet growing demand.
"The company currently has a capacity of 113 million m² and has witnessed an increase of 67 percent in confirmed orders at the 2010 Hanover Annual Fair versus 2009, indicating strong demand for the group's products due to recovering international markets," Beltone said.
© Daily News Egypt 2010
