Egyptian textile industry, which has a great share in the country's economy, is facing difficulty to survive in the severe global competition. With the new avenues of trade coming out, the industry is exposed to fierce foreign competition.
The textile industry here is one of the oldest in the world. About 500,000 people are employed directly by 1,500 manufacturers, and give an annual output of about $3.2 billion. In 2006 the readymade garment exports are estimated to top $1.3 billion, a 30-percent increase over 2005.
The labor cost in Egypt is very cheap. A strategic geographical location helps to enjoy good trade tie with the western markets. Egypt is known worldwide for the superior quality of its cotton.
But the poor level of training and an outdated upstream sector, which is controlled by the public sector, threaten the industry's long-term capability. It also has to import about 90 percent of its total volume of yarns and fabrics for the manufacturing sector.
The huge growth of Chinese and Indian textile industry in the global market, has left the Egyptian textile industry a way behind.
Egypt is in need of a complete modernization if it wants to secure its share of the $400-billion global textile industry.
marketing@alchempro.com
