The following research report contains market research, analysis, statistics and business intelligence relating to research on Textile Products In Egypt.

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ABSTRACT
Egyptian apparel has a well-deserved reputation of quality and competitive price. Accordingly, a growing number of international fashion designers and department stores in the U.S. and the European Union make use of production facilities located in Egypt, placing orders for quality private label products designed for export markets. Other U.S. companies in the apparel business are highly encouraged to follow this trend. A list of contacts for interested companies is given at the end of this report.

A. MARKET PROFILE

The textile industry in Egypt covers the entire spectrum of cotton processing operations, including spinning, weaving, converting, knitting, and garment manufacture. It is growing at an average rate of 6.5% annually and is considered of paramount importance to the Egyptian economy. It employs more than half a million Egyptians and is a crucial foreign exchange earner. The government of Egypt (GOE) hopes to see the annual growth rate increase to 12% in order to match countries in Southeast Asia. Special emphasis is on the quality of production necessary to compete effectively in export markets.
The Egyptian apparel industry is one of the most dynamic industrial sectors in Egypt. It comprises some 1500 private sector apparel and intermediate manufacturers, the majority of which are equipped with state-of-the-art machinery. The latest technologies are adopted in all phases of production: pattern making, spreading, cutting, sewing, and packaging. Apparel manufacturers also apply the latest technical innovations such as Electronic Data Interchange (EDI), Supply Chain Management (SCM), and Product Data Management (PDM).
Total apparel production output is approximately USD 3 billion per year, representing 3.5% of Egypt's total GDP. The investment cost to create one job in this industry is about USD 2000 compared to USD 150,000 in other industries. The Egyptian market offers a complete range of products from simple T-shirts to tailored suits. In 1999, apparel exports to U.S. and EU markets totaled 68,000 metric tons, valued at some $700 million. According to export figures, 50% of 1999 exports were destined to the U.S., 35% to the EU, and the balance to regional markets in the Middle East.

One of the important characteristics of the textile/garment industry is that it is one of the very few manufacturing processes in Egypt that is handled completely in-country. It also has the highest value added: the export value of one metric ton of raw lint cotton ranges between USD 2000-2300 while the value added of one ton of textile exports averages USD 6500.
Statistical data:
(USD MILLIONS)

1999 2000 2001 (est)
Projected Avg. Growth

Rate for Next 3 Years (%) Import market 300 300 300 0
Local production 3,000 3,600 4,320 20
Exports 700 980 1,370 40

Total domestic market 2,600 2,920 3,250 12
Sources: Egyptian Garment Exporters Association, American Chamber of Commerce, leading private sector manufacturers.

Best sales prospects:

At present, the most attractive market opportunity for U.S. companies in Egypt is believed to be the sourcing of OEM products. Egyptian apparel has a well-deserved reputation of quality and competitive price. Accordingly, a growing number of international fashion designers and department stores in the U.S. and inEurope use production facilities located in Egypt, placing orders for quality private label products designed for export markets. B. COMPETITIVE ANALYSIS

Thirty-one large public entities account for 100% of spinning, 70% of weaving, 40% of knitting, and 30% of the garment manufacturing industry. In the mid-70's through early 80's, the GOE began to modernize the textile industry. To date, it has invested more than USD 2 billion in new equipment; the money coming in part from outside sources such as the U.S. Agency for International Development (USAID), international banks, and Arab funds. Egypt's exports of textiles are estimated at USD 1.3 billion per year, accounting for 25% of total Egyptian exports. The GOE hopes to see this figure grow to USD 3 billion per year within the next five to seven years. The textile industry also absorbs some 80% of domestic cotton production.

Although government-owned companies have traditionally dominated the industry, due to poor management and other reasons, many have recently suffered from losses. The public sector is by far the main supplier for many textile products such as lint, yarn, and fabrics. On the other hand, textile exports with higher value added, such as ready-made garments and clothing dominated by the private sector, have expanded successfully. This confirms the importance of pursuing the privatization of the large public sector operations; the private sector has proved its ability to innovate and penetrate export markets. Specifically, privatization is now viewed as key to countering competition from China and other producers in Asia. C. MARKET ACCESS:

Egypt currently has a ban on clothing imports. Lifting this ban is scheduled for January 1, 2002, and it may in the long run prove beneficial to the garments and clothing industry as increased competition and the ability to operate in freer markets generally has a positive impact. A ban on imports of textiles was lifted on January 1, 1998, and contrary to expectations, imports have actually decreased. This was widely believed to have been the result of a non-tariff barrier requirement imposed by the GOE specifying the weaving of the importer's name into the imported fabric.
Another key problem threatening the textile and ready-made garments industry is the large amount of such products "smuggled" into Egypt with unpaid customs and taxes. The value of such products is estimated at USD 300 million annually, and the practice has a number of negative impacts on the industry. A drawback system is employed in Egypt, whereby custom duties are paid on the imported material by the manufacturer, and provided the final product is re-exported within one year, the manufacture has the right to reclaim the already-paid duties in full. In the past, this was often considered de facto smuggling, but used appropriately, the drawback system is an efficient mechanism enabling textile and clothing exporters to use less expensive, imported raw material for re-exportation. Textile and clothing exporters can import cotton yarn for USD 2.75/kg from India and Pakistan, while local cotton yarn is sold for USD 4.50/kg.

Contact information:

Egyptian apparel has a well-deserved reputation of quality and competitive price. Accordingly, international fashion designers and department stores in the U.S. are encouraged to use production facilities located in Egypt, placing orders for quality private label products designed for export markets. The following is a listing of leading apparel manufacturers specializing in producing private labels:

Cairo Cotton Center
Km 67 Alexandria Agriculture Road, Kalioub Station, Egypt
Contact: Mr. Camille Chamoun, General Manager
Tel: 2-02-215-7079; fax: 2-02-215-2080
Email : camille-chamoun@cairocotton.com
Product range: 100% knit top & bottoms

Dice Sport & Casual Wear
5 Petrol St., from Gessr El-Suez Industrial Area, Heliopolis, Cairo, Egypt
Tel: 2-02-297-8380; fax: 2-02-297-9114
Email:dice@worldnet.com.eg
Product range: T-shirts, short sets, pajamas, body suits, sweat shirts, leggings, short, turtle necks, and mock neck

Ditem
Street 11, Amreya Free Zone, Alexandria, Egypt
Contact: Mr. Samir Nazmy, General Manager
Tel/fax: 2-03-448-0235
Email: ditem@dataxpres.com.eg
Product range: T-shirts, polo shirts, sweat shirts, underwear

Egyptian Clothing Company
Kafr El Elwa, Cairo, Egypt
Contact: Mr. Wagdy Elsonbaty, Vice Chairman
Tel: 2-02-555-7972; fax: 2-02-555-9582
Email: ecc2@gega.net
Product range: shirts, sleepwear

Egyptian International Co. For Knitting and Dyeing (Dyetex)
New Borg El-Arab city, 2nd Industrial Zone, Alexandria, Egypt
Contact: Mr. Bassem Sultan, Managing Director
Tel: 2-03-459-1290; fax: 2-03-459-2137
Email : dyetex@dataxpres.com.eg
Web Site: www.dyetexegypt.com
Product range: T-shirts, sweat shirts, polo shirts, pajamas

Egyptian Knitting and Ready Made
Industrial Zone El Amal (1), El Khanka, Cairo, Egypt
Contact: Mr. Khaled Raafat, Chairman
Tel: 2-02-469-4807; fax: 2-02-469-5588
Email: braafat@intouch.com
Product range: polo shirts, pajamas

El Saiad Tricot Company
3 El Saiad St., Waboor El Nour Area, P.O.Box 15, Mehalla El Kobra, Egypt
Contact: Mr. Mohsen El Saiad, General Manager
Tel: 20-40-222-2032; fax: 20-40-222-9441
Email: saiad@future.com.eg
Product range: Baby & children knitted goods

Fabulous Sportswear Co.
Badawi St., Shoubra El Kheima, Cairo, Egypt
Contact: Mr. Joseph Wassef, Chairman
Tel: 2-02-222-6946; fax: 2-02-220-5377
Email: fabulous@intouch.com
Web Site: www.fabulous-sportswear.com
Product range: Mens, ladies, and children's tops and bottoms

Halawa Garments
Block 17/1/ Second Zone, Sadat City, Egypt
Contact: Mr. Ahmed Halawa, CEO
Tel: 20-49-600-530; fax: 20-49-600-774
Email: halawa@egyptonline.com
Product range: Sweat shirts, t-shirts, polos

Lonetex Knitted Fabrics & Garments Fabrications
80 Mohamed Farid street, Heliopolis 11351, Cairo, Egypt
Contact: Dr. Mohamed Samir Kamal, Chairman
Tel: 2-02-512-4590; fax: 2-02-510-3942
Email: lonetex@gega.net
Product range: All kinds of knitted outerwear and underwear

Maytex
15th of May City Industrial Zone part 1, Cairo, Egypt
Contact: Mr. Khaled Morad, Planning Manager
Tel: 2-02-550-6530; fax: 2-02-550-6643
Email: maytex@maytextile.com
Product range: All woven tops and bottoms

Nile Clothing Company
Giza/Assiut Fast Road Badrashin, Giza, Egypt
Mr. Hisham Moustafa Aly, Merchandising Manager
Tel: 20-18-222-898; fax: 20-18-222-433
Email: hmoustafa@nilecc.com
Product range: Men's, ladies', boy's, girls', and kids

Product range: underwear, shorts, polos, t-shirts
Textile Industries Company 52, Mossadek St., Dokki, Cairo, Egypt
Contact: Mr. Mohamed El Messiri, Chairman
Tel: 2-02-338-8705; fax: 2-02-338-8718 Email: tic@tic-egypt.com
Web Site: tic-egypt.com
Product range: t-shirts, polo shirts, shorts and pants

Riad Group
19 Roum St., Off Misr & Sudan, Cairo, Egypt
Contact: Mr. Samir Riad, Owner
Tel: 2-02-482-2617; fax: 2-02-483-4704
Email: riadg@intouch.com

Swiss Garments Company
Tenth of Ramadan City, Industrial Zone A1, Egypt
Contact: Mr. Alaa Arafa, Managing Director
Tel: 20-15-410-662; fax: 20-15-410-661
Email: aarafa@sgc.com.eg
Web Site: www.arafagrp.com
Product range: casual bottoms, formal men's garments

World Trading Company
14, Gezirat El Arab St., Mohandessin, Cairo, Egypt
Contact: Mr. Mohamed Kassem, Chairman
Tel: 2-02-344-4132; fax: 2-02-345-5706
Email: kassem@wtc-egypt.com
Product range: All apparel and home furnishings

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

$3500 USD
For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: Egypt
Industry: Textiles
Pages: 45
Delivery: 7-12 Business Days
SKU: infre0000298