The Egyptian government has signed a shareholders’ agreement with UAE-based Othman International to establish two new companies aimed at developing two major industrial projects.

 These projects, with total foreign investments amounting to EGP 1.7 billion, will be implemented through Misr Rayon and Polyester Fibers Company, a subsidiary of the Cotton, Spinning, and Weaving Holding Company.

The two initiatives focus on recycling plastic waste and fabric scraps to produce polyester fiber and industrial felt, contributing to the reduction of carbon emissions while providing essential industrial products for local and global markets.

The first project will be established on an area of 25,000 square meters at Misr Rayon and Polyester Fibers Company, with investments of around EGP 1.1 billion.

It targets an annual production capacity of 30,000 tons of polyester fiber derived from recycled plastic waste. These fibers are used in various industries, including apparel, mattresses, pillows, thermal insulation, road lining and paving, carpets, rugs, and vehicle upholstery.

The project is expected to narrow the supply-demand gap in the domestic market, with plans to export 80% of its production, generating annual sales estimated at around EGP 800 million. The company’s capital is set at EGP 1 billion.

The second project will focus on recycling fabric waste (scraps and remnants) to produce industrial felt, which is essential in manufacturing aircraft, trains, metro systems, cars, buses, furniture, home furnishings, and thermal insulation materials.

This project will occupy 20,000 square meters within the same company and involves investments of EGP 600 million, with a similar annual production capacity of 30,000 tons.

It aims to significantly reduce imports, with plans to export 52% of production, and achieve annual sales of approximately EGP 230 million. The company’s capital will be EGP 400 million.

Minister of Public Business Sector, Mohamed Shimi, emphasized that the projects will significantly reduce reliance on imports and position Kafr El-Dawwar as a key regional hub for polyester fiber and industrial felt industries.

He further highlighted that locating the projects close to major ports and industrial zones will offer substantial logistical advantages, encouraging investors to expand in green industries that represent the future of global manufacturing.