Egypt to Construct World's Largest Spinning Factory in Mahala

The Holding Company for Cotton, Spinning, & Textile signed a contract to establish the  world's largest spinning factory in El-Mahalla El-Kubra.

This comes within the framework of the Ministry of Public Business Sector to implement a comprehensive development plan for cotton and weaving industries.

The ministry said, in a statement today, that the factory is located on an area of ​​about 62500 square meters, and can accommodate more than 182,000 spinners, with an average production capacity of 30 tons/day.

The construction work of the factory will take about 14 months, at an estimated cost of about EGP 780 million.

The development plan is based on enhancing specialization and reducing the frequency of the same activities in more than one company, by merging 23 spinning, weaving, dyeing and processing companies into 9 companies.

The plan also contains merging 9 companies for cotton ginning and trade into one company dedicated to this activity, with the aim of converting the ten companies resulting from the merger into strong entities able to compete and achieve integration among them while doubling the current production capacity by about 3 times.

Most companies that will be merged will continue their normal activities until the merger process is completed, which is expected to conclude before the summer of 2021.

The plan to develop the white gold industry will take about two and a half years at a cost that exceeds EGP 21 billion, and includes a complete modernization in construction and machinery - which was contracted to supply from major international companies - and a comprehensive development in management, marketing and training systems.

The contract was signed between Ahmed Moustafa, Chairman of the Cotton, Spinning & Textile Industries, and Ayman Saad Moharam, Vice Chairman of Gama For Trading and Contracting .