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Sunday, 17 November 2019

Hong Kong’s Handa to invest USD 100 mn in Egypt jute textiles factory

INVESTMENT WATCH- Hong Kong-based textiles manufacturer Handa Enterprise in planning to invest USD 100 mn in an idle jute products factory it leased from the Cotton and Textiles Holding Company, Handa’s president said, according to Al Mal. The company will spend USD 10 mn in an initial first phase to renovate the 34k sqm facility, which has been closed for years. Handa leased the factory for 10 years and has the option to renew the contract.

The Cotton and Textiles Holding Company telegraphed this in September, when it announced plans to lease 16 unused plots to textiles and garments investors. The move is part of a larger plan to privatize non-operating state assets in the textiles sector, for which President Abdel Fattah El Sisi’s administration has a EGP 21 bn plan.

In related news, the holding company is in talks to acquire a EUR 540 mn facility to finance the purchase of new equipment, company President Ahmed Moustafa told the press. Offers from Italian and Swiss financiers, which Moustafa did not name, are currently on the table.

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