The chairman announced that Cairo Cotton Group will be expanding their operation to the tune of $100 million. Will this investment save Egyptian cotton from extinction?
Egyptian cotton has seen better days, but possibly turning its fortune is the announcement by the chairman of Cairo Cotton Group on Sunday that they will be investing $100 million into expanding their operations.
The decision of the Egyptian government to end subsidies for those farming Egyptian cotton left one of Egypt’s prized exports in a downward spiral. Although demand is high, farmers struggled without the subsidies, leading many to farm for more profitable crops. Keeping the internationally highly sought after crop from extinction, the Cairo Cotton Group – one of Egypt’s leading exporters, supplying notable brands like Levi Strauss and Calvin Klein – have announced that they will invest $100 million to expand their operation.
Talking with Amwal Ghad, Magdi Tolba – the Chairman of Cairo Cotton Group – explained that the money is earmarked to open its second phase in Obour City. The first phase undertaken by the group was completed five years ago at a cost of $80 million and currently produces 20,000 pieces of clothing a day.
The planned extension is expected to be completed by the end of 2017 and is expected to increase their capacity from 20,000 pieces of clothes a day to 50,000.