Table of Contents
Key Points
- Elsewedy Industrial Development partners with China’s Kingdom Holdings to establish a $60 million advanced textile facility in Industria Sadat.
- The project aligns with Egypt’s strategy to double textile and garment exports by 2026.
- The landmark deal is expected to generate $300 million in annual sales and create 1,500 jobs by 2026.
Elsewedy Industrial Development, a subsidiary of multinational cable and electrical equipment manufacturer Elsewedy Electric, led by Egypt’s El-Sewedy family, has inked a $60 million agreement with China’s Kingdom Holdings to transform the country’s textile industry.
The landmark deal, supported by the Egyptian Commercial Service (ECS) and facilitated by the General Authority for Investment and Free Zones (GAFI), will establish a state-of-the-art private free zone in Industria Sadat, spanning 50,000 square meters.
A milestone in Egyptian-Chinese collaboration
The deal, signed by Mohamed AlKammah, CEO of Elsewedy Industrial Development, and Ren Weiming, Chairperson and CEO of Kingdom Holdings, marks Kingdom’s first venture in Egypt.
The new facility, slated to open in 2026, will specialize in advanced textile production, leveraging cutting-edge technologies to meet international standards and bolster Egypt’s global competitiveness in textiles.
“This initiative underscores our commitment to fostering export-driven projects and aligns with the government’s vision to double textile and garment exports by 2026,” said AlKammah. The textile sector, one of Egypt’s most competitive industries, saw exports of $1.2 billion in 2023, with projections of $1.4 billion by 2025.
Ren Weiming expressed enthusiasm for the project, calling it a “benchmark for Egyptian manufacturing excellence” and a cornerstone for deeper investments in the country.
Boosting exports and economic growth
The project aligns with Egypt’s industrial strategy to drive export growth and attract foreign investments. Yahya ElWathik Bella, Minister Plenipotentiary and Head of the ECS, emphasized the pivotal role of the Commercial Representation Office in Shanghai in facilitating the partnership. Kingdom Holdings’ investment followed seven exploratory visits to Egypt in 2023.
The factory will produce 5,000 tonnes of flax yarn annually, generating $300 million in sales and creating 1,500 jobs for Egyptian youth. Egypt’s advantageous trade agreements will allow products from the factory access to over 3 billion consumers globally.
Hossam Heiba, CEO of GAFI, highlighted the collaborative efforts between the Egyptian government and the private sector. “This project will combine Egyptian expertise with advanced Chinese technologies, ensuring competitive, high-quality exports,” he said.
Elsewedy’s expanding legacy
Founded in 1938, Elsewedy Electric remains under the control of the El-Sewedy family, which holds a 68.1-percent stake. Led by Ahmed El-Sewedy, the family has built the company into a dominant force in the electrical equipment manufacturing industry, contributing to major energy projects across the Middle East and North Africa.
In the nine months ending September 2024, Elsewedy Electric reported revenue growth of 51.49 percent, rising from EGP108.8 billion ($2.15 billion) to EGP164.82 billion ($3.26 billion).
This builds on Elsewedy’s high-profile deals, including a $1 billion partnership with Saudi Electricity Company and a $274.7 million contract with Qatar General Electricity & Water Corporation (Kahramaa), through its Qatari subsidiary, Elsewedy Cables Qatar. The company also completed a $1 billion hydro-turbine project in Tanzania, boosting the country’s grid by 705 MW.
