Egypt secures US$33.4M deal for two fiber plants based on recycling

EGYPT – Egypt has signed a US$33.4 million (EGP 1.7 billion) shareholders’ agreement to establish two fiber production facilities that will convert plastic and textile waste into high-value materials.

The announcement, witnessed by Prime Minister Mostafa Madbouly, reflects the country’s growing commitment to transitioning into a green economy and boosting circular manufacturing practices.

The agreement was inked by Misrayon (Misr for Industrial Silk and Polyester Stable Fiber Company), the UAE-based Osman International Group, and investor Wael Zakaria Abdel Maaboud Farag, with oversight from Egypt’s Ministry of Public Business Sector.

The two facilities will be based at Misrayon’s industrial complex in Kafr El-Dawwar, Beheira Governorate.

Together, the projects aim to process thousands of tons of industrial waste annually using advanced European recycling technologies, producing polyester fiber and synthetic felt.

These efforts are projected to reduce environmental pollution, generate local employment, and enhance Egypt’s competitiveness in international markets through increased production and exports.

The first project will focus on recycling plastic waste to produce 30,000 tons of polyester fiber per year.

With an investment of EGP 1.1 billion (US$21.71m) and a total capital of EGP 1 billion (US$19.73m), it will occupy a 25,000-square-meter site.

It is projected to generate EGP 800 million (US$15.79m) in annual revenue, with 80% of its production designated for export.

The second project will recycle textile waste into 30,000 tonnes of synthetic felt annually. Built on a 20,000-square-meter plot, the facility will require an investment of EGP 600 million (US$11.84m) and a capital base of EGP 400 million (US$7.89m).

It is expected to export 52% of its output, contributing approximately EGP 230 million (US$ 4.54m) in annual sales.

Officials say the fiber plants are part of a larger strategy to integrate recycling into Egypt’s industrial sector, reduce dependency on imported raw materials, and support environmental conservation.

The strategic partnership also marks a deepening of cross-border cooperation, particularly with the UAE, in fostering sustainable development and innovation in waste-to-resource technologies.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE