Egyptian govt allocates E£ 300mn for textile sector

The Egyptian Government has allocated E£300 million for revival of textile companies, especially spinning and weaving units.

The Government headed by Prime Minister Dr. Hisham Qandil is keen to revive the textile spinning and weaving industries in the country, as they involve low investment while creating several employment opportunities, Minister of Trade and Industry Dr. Hatem Saleh said while announcing the Cabinet decision.

There will not be any lay-offs during the restructuring of loss making textile companies, even if these companies are liquidated, the Minster said.

He added that efforts would be made to further boost the profits of profit-making spinning and weaving companies.

On the other hand, various alternatives would be considered for loss-making companies, which cannot be restructured. Liquidation and partnership with the private sector would be among the various options that would be considered by the Government to minimize losses of these firms.

The Minister said there are 430 textile units in the country which are facing problems, 90 percent of which have trouble with banks, while the remaining 10 percent have license problems. He said the Government is making efforts to tackle and address the problems of these companies.

Source: Fibre2fashion