Cloud Chain plans a carbon-neutral textile complex in Port Said

Chinese industrial developer Cloud Chain plans to build a USD 1.5-2 bn textile city in Port Said, in what could be the region’s first integrated carbon-neutral textile complex, according to a statement from the Investment Ministry. The project would span 4.5 mn sqm and be developed over two 24-month phases — the first 2 mn sqm phase will host 30-50 textile companies alongside vocational schools and logistics facilities, while the second phase will focus on integrating feeder industries.

Why it matters: Surging labor and energy costs in traditional textile hubs like Turkey and China, combined with instability in Bangladesh and the Red Sea shipping crisis, makes our geographic proximity to Europe attractive for brands seeking near-shore manufacturing alternatives, Egyptian Cotton Association Chairman Wael Olama told us last month. Egypt’s goal of raising textile and garment exports to USD 12 bn by 2031 is still achievable, he said — but only if factories keep coming in.

IN CONTEXT- Hong Kong’s Crystal International recently committed USD 350 mn to an integrated textile complex in Elsewedy Industrial Development’s Industria October, and three other Chinese companies are building USD 65.5 mn worth of factories in Qantara West.

What’s next: The company and ministry are currently discussing whether to establish the complex under an Investment Zone or a Special Investment Zone framework.