Why Egypt'S Textile Industry Is Full Of Worries?

< p > here the world is < a target= "_blank" href= "http://www.91se91.com/" > dress < /a > a target= "_blank" href= "_blank".

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< p > workers strike, factory closures, textile enterprises, raw materials and cotton textiles are strongly challenged by international competitors.

Since the political problems in Egypt in 2011, the development of the textile industry in this country is worrying.

The textile industry is one of the pillar industries in Egypt. It has about 400 factories, with 300 thousand of the employed population, 70 thousand of whom are in state-owned enterprises, 230 thousand in private enterprises, and 1/4 of non-agricultural labor posts for Egypt. Textile exports account for 27% of the total output of non petrochemical products.

The Egyptian Gazette in May this year pointed out that since the political change, the textile industry has been hit hard.

Because of lack of financial support, textile enterprises are struggling to buy raw materials and pay wages for workers.

At the same time, because of the old equipment and poor maintenance, only 30% of the state-run textile enterprises can achieve the maximum capacity operation, and the obsolescence of equipment will directly affect the quality of the products.

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Egypt's textile industry is declining. Egypt's industry calls for Egyptian government departments to integrate with the international market and provide more preferential financing policies to textile producers and exporters. P

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< p > < strong > "big fight" factory suffered heavy losses < /strong > < /p >

< p > "although Egyptian textile exports have a long history, they are facing internal and external troubles.

Because of the political turmoil and economic recession in recent 3 years, the Egyptian textile industry has been on the low end, and most of the textile factories have been closed. After privatization of some enterprises, the judiciary has become a state-owned enterprise acquired by the government.

The president of the Egyptian Textile Export Association said that, on the one hand, the development of the textile industry in Egypt was stagnant; on the other hand, because the European market exempted tariffs on textiles imported from Pakistan, the price of Pakistan textile exports to Europe was about 30% lower than that in Egypt, and Egypt was facing fierce competition in the field of cotton textiles in Pakistan.

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< p > Egypt textile holding company is Egypt's largest state-run textile industry factory, and is also Egypt's "top class" textile enterprise.

The company is located in Mahalla, Egypt's cotton production center. It has 32 companies, including 9 Cotton Corp and 22 home textiles, yarn, weaving and dyeing and finishing companies.

However, even the leading backbone enterprises in Egypt experienced the turmoil of the company's liquidation in 2012, the strike of workers in 2013, and the reorganization of trade unions. The strike time of workers in February this year was more than a week.

Ahmed Mustafa, the chairman of the holding group, recently disclosed that in the current fiscal year, the payroll for the fiscal year was 2 billion 300 million pounds, and the last fiscal year was 1 billion 900 million pounds.

Egyptian textile company lost a total of 2 billion 100 million pounds, which was higher than the level of 1 billion 800 million pounds in fiscal year 2012/2013, and only 32 of the 32 branches were profitable.

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< p > factory failure or low production capacity resulted in the lack of raw materials for textile enterprises in the country.

Egyptian textile products purchasers have publicly stated that due to the closure of the local textile factories, < a target= "_blank" href= "http://www.91se91.com/" > clothing > /a > products, especially the dress, evening wear and military dress, including uniforms, berets, boots, socks, blankets, leather belts, etc., are in short supply.

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< p > < strong > enterprises appeal for financial support < /strong > /p >

The development of the textile industry in Egypt is short of financial support, and the banks in the country are also facing the cash shortage situation. Therefore, they refuse to lend to the textile industry, which makes the textile enterprises in Egypt unable to afford to buy raw materials and pay P wages.

At the same time, because of the old equipment and poor maintenance, only 30% of the state-run textile enterprises can achieve the maximum capacity operation, and the obsolescence of equipment will directly affect the quality of the products.

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< p > in addition, the development of a href= "http://www.91se91.com/news/index_p.asp" > Egypt < /a > cotton industry has also been affected.

Egyptian velvet is long, glossy and tough. It is a top quality material in the textile industry. It has long enjoyed a high reputation in the world.

However, due to the lack of funds, Egyptian textile enterprises generally choose to buy low cotton in the international market at the price of 600 kg to 700 pounds per kilogram (100 kg), because the price of high quality Egyptian cotton is 1000 pounds per KT.

Egyptian cotton's domestic market has been shrinking, cotton growers' planting enthusiasm has been hit, and Egyptian cotton production has been decreasing year by year. In 2012, it was 3 million 800 thousand metric tons in 2012 and 2 million 500 thousand in 2013.

In addition, foreign textile manufacturers are more likely to use short staple cotton.

Short staple cotton has taken up 97% of the market share, while Egypt's flagship product is still long staple cotton.

Meanwhile, the long staple cotton has lost its international competitiveness in terms of quality and price due to its worldwide cultivation.

This situation will create a vicious circle. The Egyptian Gazette pointed out that if the government does not save the textile industry as soon as possible, Egypt's textile products will lose its international competitiveness. The Egyptian industry also appeals to the government to give financial support to the textile industry.

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< p > < strong > the government allocated more than 300 million pounds, < /strong > /p >

In February this year, the Egyptian finance minister said that the government planned to allocate 2 billion 830 million Egyptian pounds from the budget to ensure the supply of basic materials in Egypt. P

Cotton and textile industry Co., Ltd. (CTIHC) will receive 206 million pounds, which will be used to pay workers' bonuses.

According to the news this month, the Egyptian government recently adjusted the subsidy scheme for the textile industry, and decided to grant financial subsidies to the spinning enterprises in the 2013~2014 fiscal year, from the original 200 million pounds to 500 million pounds.

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Mounir Fakhry Abdel Nour, Minister of industry and trade of Egypt, said the decision was based on the Egyptian cabinet government's efforts to revive the cotton textile industry in Egypt and the development of the textile industry, aiming at providing assistance to the textile enterprises in the country to buy cotton. P

Egypt's spinning enterprises and exporters are encouraged to increase the purchase of Egyptian cotton while reducing the import of cotton, so that the cotton textile industry in Egypt can achieve overall development.

According to the data of the central mobilization and Statistics Bureau of Egypt, the number of Egyptian cotton purchased by Egyptian enterprises dropped to 79.9% in the second quarter of this year, only about 81 thousand and 600 ktal, while the export of Egyptian cotton decreased by 46.5% to 126 thousand and 600 tons compared with the same period last year.

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< p > according to the decision, in the cotton sales season, which will be concluded by the end of August this year, spinning enterprises will receive a financial subsidy of 350 Egyptian pounds for every Egyptian cotton purchased from ktal (45~50 kg).

Exporters can receive a subsidy of 200 Egyptian pounds for Egyptian cotton with a weight of khtar (about 45~50 kg) under the same conditions.

The latest decision of the government is to save the spinning enterprises which are already on the verge of collapse, and hope that the output of Egyptian cotton can reach 1 million ktal.

In the past, Egypt's spinning enterprises did not want to buy Egyptian cotton because its price was high, and the new measures seemed to bring the price of Egyptian cotton to the standard of import a href= "http://www.91se91.com/news/index_s.asp" > cotton < /a > price.

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