Al-Ganzoury Held Meeting on Textile and Weaving Sector

Prime Minister, Dr. Kamal Al-Ganzoury, held meeting of the committee on textile and weaving sector, in attendance of Ministers of Planning and International Cooperation, Industry and Foreign Trade, Finance and General Secretary of the Cabinet of Ministers, General Mohamed Yoused the public business sector supervisor and Head of the Holding Company for Textile and Weaving.

Dr. Al-Ganzoury called for the necessity of setting urgent plan to develop textile and weaving, and ready made clothes as being one of the ancient industries in Egypt which enjoys higher employment. He also called for the importance of flowing new investments in four textile factories to be updated and developed, as well as providing them with latest machines and equipments, increasing their competitiveness skills, supporting and restructuring textile an weaving factories. Dr. Al-Ganzoury approved the financial accreditation allocated for cotton purchase from farmers amounting to EGP 50 million to be paid immediately through the Bank for Development and Agricultural Credit.

He called for developing such industry without layoffs, and delegated the Minister of Industry and supervisor of the public business sector to set specific suggestions over 2 weeks for naming four companies where investments shall be flowed, and the government will provide all subsidy required. The Minister of Planning added that the government wills subsidy the local cotton prices differences.

The Minister of Industry said that the ministry has taken several procedures to protect the textile and weaving industry in Egypt topped by imposing fees on importations of textiles and ready made clothes, as well as allocating financial approvals amounting to EGP 200 million from the Importation Support Fund, enforcing security regulations on textile and ready made clothes, and activating procedures to combat smuggling. He stressed that the plan suggested to develop textile industry require loses stoppage if the textile companies where salaries reach EGP 80 million monthly and EGP 1.3 billion annually with 60% production losses. An agreement was set to feasibility study for these companies to help them overcoming their losses, legalizing their situations, as well as achieving profits.

Major Mohamed said that performance evaluation of board chairmen and leaders of the textile and weaving companies will be carried over the coming phase, and developing and supporting efficiencies of four companies will be carried to help them returning production as soon as possible.