Egypt opens $70M Chinese-funded textile plant in West Qantara

Egypt has officially inaugurated the Hengsheng textile factory in the West Qantara Industrial Zone, northeast of Cairo, marking a major step in the country’s strategy to expand its industrial base and strengthen textile exports.

The project, financed by China’s Zhejiang Hengsheng with an investment of $70 million, was launched in mid-2024 and is expected to create around 1,300 direct jobs.

Built on a 20-hectare site, the facility integrates dyeing, processing, and printing units for fabrics and textile products. Beyond supporting local value addition, it is designed to significantly enhance Egypt’s export capacity in textiles and apparel.

Through the Suez Canal Economic Zone (SCZone), under which West Qantara falls, the government aims to develop a competitive industrial base, increase foreign currency reserves, and push textile and apparel exports to $10 billion annually by the end of 2025—a goal that includes creating up to one million jobs in the sector.

Investor confidence in Egypt’s economy

Prime Minister Mostafa Madbouly noted that the Hengsheng plant reflects international confidence in Egypt’s economy and showcases the government’s efforts to build a favorable investment climate, backed by integrated infrastructure and regulatory support.

Chen Song Fu, president of Zhejiang Hengsheng, projected that the factory could generate $300 million in annual revenues once fully operational, underscoring its potential as a key contributor to Egypt’s industrial and export ambitions.

Strengthening Egypt’s position in global textiles

The inauguration of the Hengsheng factory comes as Egypt accelerates its bid to position itself as a competitive player in global textile supply chains, leveraging strategic partnerships with international investors and the SCZone’s geographic advantage near the Suez Canal.