latest news
Spinning industry news
Learn about the law establishing the Supreme Authority for Spinning and Weaving in Egypt
The text of the draft law submitted by Representative Ahmed Bilal Al-Burlesi, establishing the Supreme Authority for Spinning and Weaving, which was recently referred to the committees of industry, plan and budget, and constitutional and legislative affairs, provided that a public body called the “Supreme Authority for Spinning and Weaving” would be established, which would have a legal personality and report to the Prime Minister. Its headquarters is in Cairo and it may establish branches and offices within the Republic The draft law explained that the authority aims to develop and follow up on the strategy for the textile and ready-made clothing sector to advance, develop and deepen it, and to coordinate between the various relevant authorities in order to achieve it, by taking whatever actions it deems necessary, and in particular, studying legislation, agreements, ministerial decisions and periodicals related to the industry. And study its practical impact, and propose what it deems appropriate regarding it, and resolve any confusion or disagreement between the various state agencies regarding the sector, and conduct research and studies on the sector and all industries and agriculture related to it, and to keep pace with global development, also by creating a documented and accurate information map of production in the sector, and attracting Foreign and local investors to invest, whether in single projects or integrated textile cities, and encouraging them to invest in the sector The law also aims to enhance the growth of the value-added chain in the sector, and encourage the policy of establishing integrated textile cities to increase their development rates by focusing on exports of intermediate products, especially those that use Egyptian cotton as an input, and at the same time increasing exports of final products Providing soft loans to farmers with the aim of purchasing harvesting machines, and developing a strategy to expand the use of plant, animal and industrial fibers in the textile and clothing industry through expanding the cultivation of fiber plants and establishing agricultural projects related to the production of silk and wool The law aims to develop a plan to establish industrial training and technical schools specialized in spinning, weaving, ready-made clothing, design and dyeing in all industrial areas, and to provide the necessary training programs to train and qualify workers in the public business sector and the private sector to ensure the quality of the Egyptian product, and to cooperate with international design centers with a high reputation The third article of the project specified the formation of the Authority’s Board of Trustees, headed by the Prime Minister and membership of ministers. (Public business sector, industry and trade, agriculture, finance, planning, education, higher education, petroleum, international cooperation, workforce, environment) and three figures with experience in industry. The Board of Trustees meets at the invitation of its president at least once every 6 months. Or whenever the need arises, the Board of Trustees is responsible for drawing up the general policy for the Authority’s work, approving the main plans related to its implementation, and monitoring implementation The project stipulates that all ministries, agencies, governorates, and all parties related to the sector are committed to providing the Authority with the data, statistics, research and studies it requests related to the sector to achieve its established goals
A qualitative and quantitative boom witnessed in cotton cultivation in Egypt, towards achieving a major renaissance awaited by the spinning industry
The Egyptian state is focusing on regaining the cotton throne again, after years of declining area, and thus a decline in the country’s market share in global markets. During the past five years, the government has succeeded, through a comprehensive plan, in restoring cotton again through several axes, perhaps the most important of which is increasing the area cultivated with long-staple cotton, in addition to cultivating short-staple cotton in East Uwaynat and Toshka, in accordance with the presidential directives of the Ministries of Agriculture, the Public Business Sector, and the National Service Projects Organization The result of that plan is a gradual increase in the areas, as the area of planted cotton this season reached about 255,000 acres of long- and medium-staple cotton and 1,250 acres of short-staple cotton. Thus, these areas will provide raw material for factories, in addition to exporting the surplus Perhaps the axis of modernizing the spinning and weaving factories and implementing a mechanism for trading and trading cotton is no less important than the expansion of agriculture. Therefore, the Egyptian state attaches great priority to facilitating the spinning and weaving factories and complementary industries until the development process is completed in a comprehensive and integrated manner Cultivation of 254,875 acres of cotton in 18 governorates The General Authority for Cotton Arbitration and Testing revealed that 254,875 acres of cotton were grown in 18 governorates, with the area of cultivation in the Upper Egypt governorates reaching about 26,444 thousand acres, and Fayoum topped the governorates with an area of 15,257 acres The area of crops currently being harvested in the governorates of Lower Egypt reached 228,431 acres, topped by Kafr El-Sheikh Governorate with about 84,257 acres, followed by Sharkia with 43,689 acres, then Dakahlia with 42,652 acres While the area of short-staple cotton, according to data from the Ministry of Public Business Sector, reached about 1,250 acres, including 1,000 acres east of Al-Uwaynat and 250 acres in Toshka, where the harvest season will begin next October amid expectations that the average productivity per acre will reach 10 quintals, similar to the productivity of last season The government was also keen to pay attention to the excellent and super quality of cotton, and cultivation was carried out 29931 of the Giza 86 type, and 4184 of the Giza 97 type, which are ultra-long types Giza 94 cotton occupied the largest area, amounting to 174,345 acres The cotton trade and circulation system began its work in the governorates of Upper Egypt in order to keep pace with the crop harvesting operations that began in those governorates. The Misr Cotton Trade and Ginning Company, affiliated with the Ministry of Public Business Sector, manages the system in all governorates that include areas cultivated with cotton, and the number of cotton receiving and assembly centers is about 240 centers, and it was started today in 5 governorates in Upper Egypt The Minister of Public Business Sector said that the cotton trade and circulation system is based on supplying cotton directly from farmers and without the presence of intermediaries, ensuring that they obtain the total return from the sale and achieve lucrative returns that are reflected in the expansion of the crop area during the coming years, which ensures the provision of the necessary high-quality cotton for new projects. To develop the textile industry, which is currently being implemented
Successive crises witnessed by the textile industry in India and Asian countries, which turned global attention towards Egypt
The spinning industry in India and many of the major Asian countries in this industry witnessed several successive crises that clearly affected the sales, production and market of yarn in these countries, which for several decades remained at the forefront of the scene, until they were affected by the global economic crises that inflicted huge losses on the spinning factories in these countries Although the global crisis is the same that faced all countries of the world, including Egypt, the difference comes in the way each country responds to confronting this crisis and also comes in the strategic elements on which the state relies in dealing with such economic crises This is the difference that makes countries collapse and others continue and endure, depending on the extent of each country’s readiness to deal and confront in each of its economic fields. In India, for example, spinning factories incurred losses ranging between 20-25 rupees per kilogram of yarn due to the decrease in demand and the rise in interest rates. Revised power tariffs, repayment of Emergency Credit Line Guarantee Scheme (ECLGS) loans, and unrestricted imports of yarn and fabric from China, Bangladesh and Vietnam have led to huge cash losses of Rs 20-25 per kg of yarn, say those in the spinning industry there According to the Tamil Nadu Spinning Mills Association (TASMA), bank interest rates have gradually increased over the past few months from 7.75 per cent to 10.75 per cent, resulting in the cost of yarn production increasing by Rs 5 to Rs 6 per kg. As well as the recent rise in electricity tariffs, current consumption fees, maximum demand fees, peak hour fees and other indirect fees In view of the significant decline in demand and prices of cotton yarn and the consequent accumulation of huge inventories, the spinning sector has decided to reduce production by 33.33 per cent (one-third) of the current daily production. Such a radical step was necessary to ensure a reasonable price and boost the declining demand for cotton yarn According to Shishir Jaipuria, President, Confederation of Indian Textile Industry (CITI), short-sighted government policies regarding cotton and cotton spinning in the recent past have turned the lucrative spinning industry into a crisis-ridden sector over the past few years By analogy, many other leading countries in the field of the yarn industry were exposed to the same crises in a relative manner from one country to another, as is the case in China, Afghanistan, Iran, Vietnam, Bangladesh, and others. Which had the greatest impact on the direction of the convoys of yarn import ships in the world towards the countries that It still maintains its economic stability and its industries. On the contrary, as is the case in Egypt, there has been a corresponding renaissance towards the almost complete advancement of the yarn industry, starting with the provision of primary raw materials, through the conscious training of its workers, all the way to the use of the latest technologies and production machines in order to compensate for the quantitative increase in demand and also keep pace. The qualitative difference in the quality of yarn required recently according to the development that the clothing and textile industry has witnessed recently Egypt's rapid pace with dealing with the global crisis has turned attention towards it and its textile factories, as its companies have proven their ability to commit to meeting the global demand for the required quantities on time and with the required specifications, in addition, of course, to providing a competitive price commensurate with the global crisis, and this is due to stability. Integrated into the pillars of this industry in Egypt. The reason for this is not only due to the interest in raw materials, trained workers, and modern energy-saving machines and technologies, but also because of the balanced and stable policies, as well as the facilities provided by the Egyptian state to companies operating in the spinning industry on its territory, which had the greatest impact in achieving success towards fulfillment. With the aspirations of countries and textile factories in the world towards the return of the use of Egyptian yarn, not as it was previously in the most glorious times, but rather better and more, especially with the failure experienced by other yarn manufacturing countries
Due to the global crisis, controls on limiting imports give way to Egyptian spinning mills
If success and prosperity result from suffering and crisis, and if development and change result from the womb of need, then the textile industry in Egypt is being born again from the womb of the global crisis to which the world has been exposed economically in recent years. Not only because of the failure of some of the leading countries in the field of spinning to confront the crisis, but also because of the local market’s trend towards Egyptian spinning again, just as it was during the boom in the spinning industry in Egypt National industry became the alternative Natural approach, albeit gradually, to deal with this crisis Considering the Egyptian market, which imports yarn, textile, and clothing products at about $5 billion annually, according to economic estimates, including $3.8 billion in textiles and clothing, according to data from the Export and Import Control Authority, including cotton at $542 million, and polyester and viscose at about $1.2 billion. Thus, it is possible to exploit The current crisis in the production of these yarns locally in order to benefit from the amount of $5 billion or more, according to other significant economic studies From here, we move towards seriously considering the use of local resources and the use of our factories instead of expensive imported materials, which also include the added value that foreign companies and factories bring to the Egyptian economy As for the raw material, it has become necessary to pay attention to recycled polyester as an alternative to virgin polyester, in line with the recommendations of the Climate Conference to preserve the environment on the one hand and preserve resources on the other hand As for cotton yarn, this is what the Egyptian state is actually moving to achieve, as it expands the cultivated area of cotton, especially short-staple cotton, to meet the needs of spinning factories, along with long-staple Egyptian cotton Thus, external spending is saved in foreign currency, and at the same time, there is an external attraction towards importing Egyptian yarn at a much greater rate than in all previous eras over the past centuries All the previous data confirm that the current crisis can be greatly benefited from in supporting the textile industry, gradually increasing exports, and expanding cooperation with the United States of America through the QIZ Agreement, especially since countries such as Vietnam and Bangladesh have annual exports of textiles and clothing exceeding $30 billion, which is not It is absolutely comparable to Egypt's capabilities and location
