Could Egypt be the potential textile base of Chinese apparel manufacturers?
Seems so, considering the pace at which the China-Egypt Mankai textile park is fast heading towards completion.
The much talked about industrial park is expected to house around 600 Chinese garment and textile factories. 70 factories have already committed to the park, while around 20 more would go operational soon.
The Egyptian Trade and Ministry says the park could provide nearly 160,000 jobs once all factories start functioning.
Located in the Egyptian city of Sadat, the 3.1 million square metre park could help China export garments duty-free to USA as well as European Union (EU) especially in the wake of US imposing heavy duty on Chinese imports.
The costs are also expected to go down by huge margin – even by 50 per cent – once the production shifts to Mankai. Keeping this in mind, Shishi City Fusheng Garment Weaving, which specialises in jackets, has kept a budget of US $ 10 million to shift its production from China to Mankai for its EU and Middle East clients.
So what makes Egypt an ideal textile nation!
Besides, Suez Canal, Egypt’s location at the crossroads of trade routes between Europe, Africa and Asia makes it an integral part of China’s Belt and Road Initiative. Also one cannot deny the fact that Egypt is still one of the prominent textile exporters globally.
Cheap labour, low water and electricity cost are other major attractions for several Chinese firms to come to Egypt.
The textile park is awaiting machines for nearly 140 factories by the end of the year, and once these are available, the production is expected to start in full swing.
