Mr. Hossam Heiba, along with a delegation from the Chinese Luthai Group, the world’s largest producer of dyed fabrics and shirts, discussed the company’s plan to establish its first factory in Egypt, on an area of 500,000 square meters with an investment cost of $385 million.
The company’s delegation included Mr. Liu Deming, Global Marketing Director, Mr. Du Lixin, Chief engineer, Mr. Zhang Wei, Assistant Chairman of the Board, and Ms. Li Jie, Strategy and Marketing Director. The meeting was also attended by Mr. Mohamed Kassem, Chairman of the Egyptian Exporters Association (ExpoLink), Ms. Sherine Taha, Policy Support Unit Director at the Association, Mr. Ahmed Zohair, Head of the Central Department of Promotion at GAFI, and Ms. Menna Mounes, investment promotion specialist for Chinese investments at GAFI.
Mr. Liu Deming stated that the company aims to establish a complete supply chain in Egypt, starting from yarn production to fabrics and ending with garments. All products will be directed entirely to foreign markets with a 100% export rate, contributing to the Ministry of Investment and Foreign Trade’s strategy of "Investment for Export."
He emphasized that the company will bring its technological expertise to the Egyptian market, employing the most advanced and comprehensive spinning systems globally. The company has also received the Chinese National Science and Technology Award four times, highlighting its dedication to continuous development and product improvement, which will enhance the competitiveness of the Egyptian market when the company begins operations in the near future.
Mr. Liu Deming added that the Egyptian market fulfills all the company’s requirements, including economic stability, sustainable growth, and the availability of skilled labor in terms of both quantity and quality.
Moreover, the strong ties between Egypt and China facilitate the flow of Chinese investments into Egypt.
For his part, Mr. Hossam Heiba affirmed the Egyptian market's robust position to attract and support new investments. He emphasized the pivotal role of the Investment Law and its executive regulations in creating a favorable investment environment, along with Egypt’s consistent economic growth, outpacing regional averages. He highlighted Egypt’s abundance of skilled labor, strategic trade agreements that grant access to markets of over 3 billion people worldwide - ensuring the flow of Egyptian goods and services without restrictions - and its highly competitive investment costs for construction, utilities, and essential services globally.
He outlined the various investment frameworks and incentives tailored to the specific needs of each project. He emphasized that the Chinese Luthai Group is well-qualified to receive the maximum financial and regulatory incentives granted under the Investment Law, as the company’s strategic plans align closely with Egypt’s developmental priorities, including localizing technology, generating labor-intensive employment opportunities, fostering export-oriented investment, and developing regions in greatest need of growth. Furthermore, the Luthai Group’s new factory is eligible for the "Golden License", a comprehensive approval that includes all the permits required for the company to commence operations and reach full-scale production. Remarkably, this license is issued within just 20 working days.
Mr. Mohamed Kassem, Chairman of Egyptian Exporters Association (Expolink), emphasized the substantial inflow of foreign investments, particularly from China, into the textiles and clothing sectors. This surge coincides with the efforts to restructure global supply chains and investors’ increasing seek for nearby markets for investment, representing a major growth opportunity for Egypt. Moreover, he pointed out that the Egyptian government’s ongoing economic reform program significantly enhances the competitiveness of Egyptian exports in these sectors.