Chinese Luthai Group plans to establish $385 mln plant in Egypt

The factory will cover an area of 500,000 square metres.

Liu Deming, Luthai’s global marketing director, highlighted that the company intends to establish an entire supply chain in Egypt, starting from yarn manufacturing to fabric production, all of which will be directed towards export markets.

This aligns with the Ministry of Investment and Foreign Trade’s "investment for export" strategy.

Deming also noted that the Egyptian market meets all of Luthai’s requirements, including economic stability, sustainable growth, a sufficient supply of skilled labour, and strong bilateral relations between Egypt and China, which will help accelerate the flow of Chinese investments into Egypt.

For his part, Heiba confirmed that the Egyptian market offers all the factors necessary for successful investments, with the Investment Law and its Executive Regulations acting as catalysts.

He highlighted that Egypt’s economic growth rate consistently exceeds the regional average, there is a surplus of skilled labour, and the country benefits from trade agreements covering three billion people worldwide, ensuring the unrestricted flow of goods and services.
Additionally, the cost of investment in construction, utilities, and essential services is among the lowest globally.

Founded in 1987 in Zibo City, China, Luthai has grown from a small cotton-spinning mill into a global leader in high-grade yarn-dyed fabrics and shirts. With 16 subsidiaries and over 40 factories, it generates annual sales of $1 billion.

The company collaborates with top brands like Burberry, Hugo Boss, and Armani while focusing on developing automatic production systems and sustainable factories in the future.