Turkish denim manufacturer makes $20M investment in Egypt

Turkish textile company Şirikçioğlu Grubu is making a $20 million investment in Egypt’s Suez Canal Economic Zone (SCZone).

The company, which has textile, energy, carpet and agriculture divisions, entered an agreement with SCZone to establish a factory specializing in the production of denim yarns, threads and fabric in the West Qantara Industrial Zone.

The project will cover 16,700 square meters. Şirikçioğlu Grubu reports that it will provide 500 direct working opportunities and produce 18 million tons of fabric annually. Half of the production will be allocated for export; other half will be directed to factories working in Egypt.

Şirikçioğlu Grubu’s product range spans super-stretch, rigid, laser, sanded, printed, coated and overdyed denim. The company produces 10 million meters of denim monthly in Turkey. It also produces 2 million meters of non-denim fabrics, including options with Tencel, modal and other specialty fiber blends.

SCZone is dedicated to creating an “investor-friendly business environment” for foreign-owned businesses. All goods produced in the zone are given an Egyptian country of origin certificate, giving them preferential access to all countries with which Egypt has Free Trade Agreements with.

Ahram Online reports that it is the 25th project to be established in the industrial zone. Several are made by Turkish denim manufacturers including Eroğlu Global Holding A.S and Denim Rise. With rising production costs and supply chain uncertainties, denim brands are looking for cost-effective, reliable alternatives.