Rattled with economic woes, several Egyptian textile producers are being forced to close down their manufacturing units or operate at reduced capacities due to high cost of imported raw materials and a decline in demand for garments in domestic market.
According to a report released by the Investors Union of Egypt, about 1500 production units in the country have either shutdown or suffer from a decrease in production, mainly due to the ongoing economic crisis in the country.
Mr. Mohamed al-Murshedi, president of Textile Industry Division and vice president of the Federation of Investors, said that around 40 percent of Egyptian yarn and textile factories have shutdown due to the economic crisis and the ongoing decline in the value of Egyptian currency.
Blaming the Egyptian Government, he said the lack of an appropriate policy has made it difficult for the textile producers to compete with the global market.
Mr. Mohamed al-Qalyubi, president of the Investors Organization of Mahala, informed that around 40 factories, including large factories such as Abu al-Sabaa and Fajar Al-Mahala, in the region have closed down its operations and it is going to have a negative impact on the yarn and textile production in the country.
Mr. Fatahi al-Sayyed, president of the Investors Organization of Buhaira, said that almost 100 small and mid-scale manufacturing units including textiles have shutdown because of the inability to access adequate resources.
