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Egypt’s SCZONE has signed agreements worth more than $100 million with Chinese textile and garment manufacturers to establish factories in the West Qantara Industrial Zone during an ongoing investment promotion tour in China, the second such tour this year after May 2023.
The agreements were signed by Chairman Waleid Gamal El-Dien with the representatives of the Chinese companies, according to a press statement issued by SCZONE.
The agreements are as follows:
• Usufruct agreement with Zhejiang Hengsheng Dyeing Company to establish a dyeing, processing, and textile manufacturing project over an area of 200,000 square metres (sqm) at an investment of $70 million.
• Letter of Intent (LOI) agreement with Shaoxing Yuding Textile Company to set up a factory over an area of 12,700 sqm at an investment of $5 million. The factory will export 90 percent of its production to the American and European markets.
• LOI agreement with Shengzhou Captain Industrial & Trading Co., to establish a project to manufacture spandex, polyester, and elastic yarns on an area of 12,000 sqm at a total investment of $5 million.
• LOI with Hangzhou-based apparel and fashion company Indochine Holdings to establish a factory over an area of 65,000 sqm at a total investment of approximately $21.3 million. The factory will export its output to the American and European markets.
During the previous tour in May, the SCZONE chief had signed an LOI with ready-made garment company Shanghai Shengda, which culminated in a $28.5 million investment agreement in July for a factory in the West Qantara Industrial Zone.
Gamal El-Dien said the agreements open up a new horizon for Chinese investments in the Middle East region in clothing and textile industries.
Chinese investments in SCZONE’s Sokhna Integrated Industrial Zone currently amount to more than $2 billion, according to the press statement.
West Qantara Industrial Zone spans a total area of 19.5 million sqm.
(Writing by Marwa Abo Almajd and Eman Hamed; Editing by Anoop Menon)
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