The Holding Company for Spinning and Weaving has decided to reduce the price of yarn by LE4 for the local market, according to company Chairman Mohsen al-Jilani.
The company, which is the largest yarn producer in Egypt, has recently had difficulty competing with foreign imports due to its higher prices.
In statements to Al-Masry Al-Youm, Jilani said the price would be reduced from LE31.5 a kilo to LE27.5.
Meanwhile, Tareq Amer, president of the Ahly Bank of Egypt, said his bank would extend the grace period for Mahalla’s spinning and weaving companies to pay off their loans. He also said it would provide increased credit to companies that currently suffer from local market stagnation, greater raw material prices and the loss of some export markets.
At a meeting with investors and factory owners in Mahalla in Gharbiya Governorate, Amer said his bank is ready to adopt non-traditional solutions to support the industry and provide the liquidity necessary to operate the factories.
Amer urged the government to ease restrictions on the textile industry, and suggested lowering the sales tax on production materials and equipment while adopting measures to protect the sector’s investors.
He expressed readiness to work closely with both businessmen and the government to look at ways of revamping the industry.
Amer also suggested establishing a fund to provide factories with better technology, adding that the bank is ready to grant credit facilities of over LE500 million to modernize the industry.
Translated from the Arabic Edition