Typical Case of "Capacity to Sea" in China
According to Kabir, the above textile and garment city project is expected to last for seven years and will include 568 factories with a total investment of 2 billion U.S. dollars, of which foreign investment will account for 87% and local investment will be 13%.
"This project was carried out under the framework of the strategic cooperation between Egypt and China and is an important result of the previous visits by the leaders of the two countries." Kabir said that "the project negotiations between the relevant departments of the two countries started from May 2017, And reached an agreement on November 5, 2017 to establish a textile and garment city in Sadat City. "
It is reported that just this week, land use documents have been handed over to Chinese enterprises. The project will officially begin in March this year and be implemented in five phases. The first phase is scheduled to be completed in 2020 and will include 57 factories. The total investment The amount of 230 million US dollars. The five phases are expected to be completed in 2024.
However, Egyptian President Cecil said in his speech on the very day that the Egyptian government intends to subsidize 50% of the project cost and helped to reduce the project's implementation period to 1.5 years.
It is estimated that the project will provide 160,000 direct jobs in Egypt and the future annual output will reach 9 billion U.S. dollars.
Sadat Textile City is not the first cooperation between China and Egypt in the field of textile. In the Sino-Egyptian Suez economic and trade cooperation zone 130 km east of Cairo, the capital of Egypt, the textile and garment industrial park, which is dominated by non-woven textile machinery, has begun to take shape.
Meanwhile, the Chinese boulder Egyptian fiberglass production base also located in the Sino-Egyptian Suez Economic and Trade Cooperation Zone has become a typical case of "production capacity going to sea" in China.
According to the Egyptian newspaper The Pyramid, just in 2017, with the help of the Chinese glass giant, Egypt became the third largest producer of glass fibers in the world after the United States and China. "Egypt produces about 200,000 tons of fiberglass per year, 99% of which are exported." Egyptian Trade and Industry Minister Tariq Kabir told the media on January 9 that the total investment of China's boulders in Egypt of $ 520 million has been provided 2000 direct jobs.