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Luthai Group, the world’s largest producer of dyed fabrics and shirts, is investing in Egypt’s textile and apparel supply chain.

Egypt’s General Authority for Investment and Free Zones (GAFI) announced this week that the Chinese company will establish a complete supply chain in Egypt, from yarn production to fabrics and finished garments. The $385 million factory will sit on 500,000 square meters of land.

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Liu Deming, Luthai Group’s global marketing director, said the company is dedicated to enhancing the competitiveness of the Egyptian market, noting that it will bring its technological expertise and advanced spinning systems to the sector. He added that the Egyptian market “fulfills all the company’s requirements, including economic stability, sustainable growth, and the availability of skilled labor in terms of both quantity and quality.”

Luthai Textile owns 13 garment plants including 67 large-scale production lines of high-grade shirts, T-shirts and polo shirts. The four-time recipient of the Chinese National Science and Technology Award has an annual output of 30 million pieces.

GAFI reported that all products will be directed to foreign markets with a 100 percent export rate, contributing to the Ministry of Investment and Foreign Trade’s “Investment for Export” strategy.

Hossam Heiba, GAFI president, said Egypt’s Investment Law and regulations are “creating a favorable investment environment.” He added that Luthai Group is qualified to receive the maximum financial and regulatory incentives granted under the Investment Law, as the company’s strategic plans align closely with Egypt’s developmental priorities, including localizing technology, creating employment opportunities, fostering export-oriented investment, and developing regions in greatest need of growth.

GAFI reported that Luthai’s new factory is eligible for the Golden License, a comprehensive approval that includes all the permits required for the company to commence operations and reach full-scale production.

Investment from Luthai represents a major growth opportunity for Egypt. In GAFI’s statement, Mohamed Kassem, chairman of Egyptian Exporters Association, said foreign investments, particularly from China into the textiles and clothing sectors, coincides with companies’ efforts to restructure global supply chains. He pointed out that the Egyptian government’s “ongoing economic reform program significantly enhances the competitiveness of Egyptian exports in these sectors” as companies seek for nearby markets for investment.