Interloop Limited is the latest company to invest in Egyptian manufacturing.
The Pakistani hosiery, denim, knit apparel and seamless activewear company announced this week that it is making a $35.2 million investment by a subsidiary of its associate company to establish a manufacturing facility in Egypt’s Suez Canal Economic Zone (SCZONE).
The ready-made garment plant, which will initially begin with hosiery, will be fully export-oriented when it opens in 2027. It is expected to create over 1,000 jobs.
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Navid Fazil, Interloop Limited CEO, said the investment in Egypt is a “strategic next step in building a multi-origin, tech-enabled hub for our customers.”
The 650,000-square-foot facility will be in the in Al-Qantara West Industrial Zone. Located on the Suez Canal, the location provides Interloop direct access to key markets in the U.S., Europe, the Middle East and Africa.
The company said this will strengthen its ability to serve global customers with shorter lead times and competitive costs, while Egypt’s trade agreements with the U.S., EU and regional blocs support nearshoring and diversified sourcing strategies for Interloop’s partners.
“SCZONE gives us near-market access to U.S. and Europe, competitive operating economics, and an ecosystem that strengthens supply chain resilience. We will embed the same transparent, sustainable manufacturing playbook that defines our operations globally,” Fazil said.
The garment factory is Interloop’s first step into Africa. With this project, the company’s manufacturing network extends across Pakistan, China, Sri Lanka and Egypt, supported by sales offices in North America, Europe and Japan.
Egypt is attracting foreign investors. In the first 10 months of 2024, Egypt’s ready-made garment exports increased by 17 percent to $2.27 billion.
Last year, Turkish ready-made garment manufacturer Denim Rise revealed plans to invest $8.8 million in a new factory within Egypt’s Qantara West Industrial Zone. Eroğlu Holding invested $40 million for a ready-made garment factory in the same zone. Additionally, Sharabati Denim expanded its footprint in Egypt with a facility that includes two spinning halls, a warping and sizing hall, a gabardine weaving hall, and a shuttle loom weaving hall.
