Egypt launches EGP 1.7bn recycling projects

Prime Minister Mostafa Madbouly on Tuesday oversaw the signing of a shareholders’ agreement to establish two new companies aimed at transforming plastic and textile waste into usable industrial materials. The projects are backed by local and foreign investment and strategically positioned in Kafr El Dawar, a city with industrial heritage in Egypt’s Beheira Governorate.

The ventures, which will repurpose waste into polyester fibre and industrial felt, are part of the government’s broader effort to promote sustainable development and meet national climate goals under Egypt’s Vision 2030.

The larger of the two projects carries an investment of EGP 1.1bn and will focus on producing polyester fibre from recycled plastics. Set to operate on a 25,000-square-metre site, the facility will generate 30,000 tonnes annually—used in applications ranging from apparel and upholstery to insulation and automotive interiors.

Eighty percent of this output is earmarked for export, with expected annual sales reaching EGP 800m. The company’s capital is reported at EGP 1bn.

The second venture will specialize in recycling discarded fabric into industrial felt, commonly used in aircraft, furniture, and transportation infrastructure. Backed by EGP 600m in total investment and EGP 400m in capital, this facility will also have a production capacity of 30,000 tonnes per year and will export just over half its output. Estimated annual revenue is EGP 230m.

Both operations will be situated on the premises of the Misr Company for Artificial Silk and Polyester Fibers—a public-sector firm affiliated with Egypt’s Holding Company for Cotton, Spinning, Weaving and Clothes.

“These projects are a strong addition to the state’s efforts in promoting the transition towards a green economy,” Madbouly said during the signing ceremony. He emphasized that waste-to-resource industries are now a key pillar of Egypt’s sustainable development agenda.

Minister of Public Business Sector Mohamed Shimi, who also attended the event, said the projects reflect his ministry’s drive to optimize assets held by public-sector firms while enhancing economic and environmental value. Shimi believes the new companies will not only reduce Egypt’s dependence on imported raw materials but also establish Kafr El Dawar as a regional industrial hub thanks to its proximity to ports and infrastructure.

“Maximizing our industrial capabilities using local waste streams opens the door for economic diversification and global competitiveness,” Shimi noted.

Both projects will deploy European recycling technologies and create products for both domestic consumption and export, signaling Egypt’s ambitions to become a serious player in the circular economy.

According to the government, the initiative will lower carbon emissions, create jobs, and improve the trade balance—all while positioning Egyptian goods more favorably in international markets.

The recycling plants are part of a growing trend of industrial transformation in Egypt, where environmental goals are increasingly driving investment and innovation. As the country pushes to reduce waste and increase the value of its manufacturing sector, these projects are expected to serve as a blueprint for future green investments.