Tuesday 17 May 2022
I wrote – Shaima Hefzy:
Hisham Tawfiq, Minister of Public Business Sector, said that the construction works of the spinning factory project in Mahalla Spinning Company are expected to be completed by the end of this year, between November and December.
The Minister explained to Masrawy that he expects to complete the construction projects in the spinning and weaving holding companies development plan by September 2023, adding: “We have 65 construction projects that will start to be completed next September, with needs to be disposed of in September 2023.”
And the new Spinning Factory (1) in the Misr Spinning and Weaving Company in Mahalla al-Kubra – under construction – is the largest factory in the world for the production of yarn with an estimated capacity of 30 tons of yarn / day.
The new factory will be built on an area of 62.5 thousand square meters in the Mahalla Spinning Company, and will accommodate 182,000 spinning mills. Production is scheduled to start in the second quarter of 2022, at a cost of about 780 million pounds, excluding the value of the machines.
The minister added that the completion of the construction works will be balanced with the supply of new equipment to the factories, noting that documentary credits have been opened to import the equipment, and discussions are underway with companies to speed up the procedures.
“We have a meeting tomorrow with the Saatchi company to expedite the procedures in preparation for the start of supplying equipment in the coming months,” according to the minister.
The Ministry of Public Enterprise Sector contracted to supply new equipment to spinning and weaving companies from international companies (German, Swiss and Italian) as part of the sector development plan.
Spinning and weaving companies face many challenges related to their accumulated losses and the provision of development liquidity, and were recently able to reach an agreement with the Ministries of Petroleum and Electricity and the National Investment Bank to repay historical debts.