China’s Fountain Set, one of the world’s largest textile producers, is preparing to invest $100 million to establish a new spinning and weaving complex in Egypt, marking a major expansion into the region’s textile manufacturing sector.
The announcement came during a meeting between GAFI Chairperson Hossam Heiba and a delegation from Fountain Set, alongside representatives from Elegance Apparel Garments Freezone, which currently operates within the Shebin El-Kom Free Zone.
Fountain Set’s proposed facility will cover 200,000 square metres and may operate under Egypt’s free zone or special economic zone frameworks. Once operational, the project is expected to create around 1,500 direct jobs and serve as a strategic hub for producing and exporting textiles to European and African markets.
The meeting also highlighted Elegance Apparel’s plans to expand production and increase its footprint in Shebin El-Kom, supporting Egypt’s broader goal of strengthening its textile value chain.
Heiba reaffirmed Egypt’s readiness to welcome major foreign investments, noting that the state has invested more than $4 billion to modernise public-sector factories with advanced European machinery. He emphasised that Egypt offers flexible partnership models, including ownership, leasing, and usufruct arrangements, giving investors the ability to select the structure that best suits their operations.
He also outlined the advantages of Egypt’s investment regimes, including public and private free zones and special economic zones such as the Suez Canal Economic Zone, each offering a tailored package of incentives.
According to Heiba, Egypt’s strategic location, extensive free trade agreements, and competitive labour market make it a strong destination for export-oriented textile and garment manufacturing. He also pointed to the industrial strength of Mahalla El-Kobra, whose advanced textile capabilities can integrate with new investments and support local supply chains.
The textile sector remains a national priority for Egypt due to its importance in boosting exports, expanding local manufacturing, and creating employment opportunities.
Representatives from Fountain Set and Elegance Apparel expressed appreciation for Egypt’s supportive investment climate and confirmed their commitment to advancing their expansion plans in cooperation with Egyptian authorities.