Egypt’s oldest textile manufacturer is preparing for its next chapter. This includes plans to bring its newly created investment arm to the Egyptian Exchange. This comes as it shifts toward higher-value exports and modern manufacturing.

Misr Spinning and Weaving Company in El Mahalla El Kubra intends to establish a new company, New Ghazl El Mahalla. The new entity will house the group’s upgraded factories and assets developed under the national textile modernization program.

Why You Should Care

The planned listing signals the next phase of Egypt’s long-running effort to modernize one of its most iconic industrial companies. By establishing a dedicated investment company, Misr Spinning and Weaving aims to attract capital, support expansion, and improve operational flexibility.

The move also reflects a broader shift in Egypt’s manufacturing strategy. Rather than focusing primarily on exporting raw cotton and yarn, the company is positioning itself to produce and export higher-value finished textiles and garments. The transition aims to strengthen Egypt’s position in global textile supply chains, create new export opportunities, and reinforce the country’s ambitions to expand value-added industrial production.

The Details

Misr Spinning and Weaving Company in El Mahalla El Kubra intends to establish a new company, New Ghazl El Mahalla. The new entity will house the group’s upgraded factories and assets developed under the national textile modernization program. 

In an interview with Asharq Business, Eng. Ahmed Badr, Chairman of the Board of Directors of Misr Spinning and Weaving Company, discloses that the company is targeting a temporary listing on the Egyptian Exchange (EGX) between July and September 2026. This is ahead of its plan to offer part of its shares on the Egyptian Exchange during the 2026-2027 fiscal year.

New Ghazl El Mahallah will serve as the group’s investment arm, aiming to attract new capital while giving management greater flexibility. Misr Spinning and Weaving will retain almost complete ownership of the new entity.  This is except for two shares distributed between the Holding Company for Cotton, Spinning, Weaving, and Garments, and Misr Shebin El Kom Spinning and Weaving. This is in line with Egyptian joint stock company incorporation requirements.

The Ghazl El Mahalla modernization project is backed by an investment of approximately USD 490 million (EGP 24B). The investment covered the construction of six new factories and the modernization of two existing factories. It also covered integrated infrastructure works and a new electricity substation.

The first phase of the project has already entered operation, including Spinning Factory 1. In his interview with Asharq, Eng Badr describes it as the world’s largest spinning mill under one roof, with 183,000 spindles and a daily production capacity of 30 tons.

Additionally, more than 97% of the second and final phase has been completed. This phase includes Spinning Factory 6, with a production capacity of 15 tons per day. It will also include a textile manufacturing complex housing 552 modern looms across 40,000 square meters. Furthermore, it will entail a dyeing and finishing factory equipped with 125 advanced production machines.

To complete the remaining work, the company still requires approximately USD 34.5 million (EGP 1.7B) to settle contractor payments and finalize construction. According to Chairman Eng. Badr securing the funding would allow the project to be completed within two months and begin full commercial operation.

Part of the modernization project has been financed through euro-denominated loans for the import of machinery. The company is planning to repay these loans over the next five years. After completing the second phase, the company also plans to upgrade several older factories with investments of up to USD 3.04 million (EGP 150M). This aims to increase production capacity and maximize the value of existing assets.

The modernization is expected to reshape the company’s product mix. Rather than primarily exporting yarn and raw materials, the company aims to focus on finished products, including fabrics, home textiles, and ready-made garments.

Around 80% of production is expected to be exported, while 20% will serve the domestic market. The company is also in discussions with several international brands, including Zara, over future supply agreements using Egyptian cotton.

Eng. Badr expects revenues to exceed USD 61 million (EGP 3B) by the end of the current fiscal year. This is after reaching around USD 51 billion (EGP 2.5B) through May 2026. Once the modernization project is fully operational, annual revenue is projected to reach approximately USD 203 million (EGP 10B), more than triple current levels. The company also aims to generate around USD 4 million (EGP 200M) in profit during the next fiscal year.

The Ripple

The planned listing extends beyond a single company. It highlights Egypt’s ongoing investment in modernizing its industrial base and increasing the role of manufacturing in economic growth. As one of the country’s largest textile producers completes its transformation, it could be a reference for the modernization of other manufacturers. It also highlights how large industrial companies can improve productivity while accessing capital markets to support future growth.

The focus on exporting finished products reinforces Egypt’s position as a competitive manufacturing and textile hub. With around 80% of production expected to be exported, the strategy aims to strengthen Egypt’s presence in international markets. It also seeks to create new opportunities for partnerships with global apparel brands sourcing higher-value textile products.

What to Watch

With the final phase of the modernization project nearing completion, up next is the launch of New Ghazl El Mahalla and its planned listing on EGX. The company’s expanded manufacturing capacity is expected to support its shift toward higher-value textile production and strengthen its export ambitions.

As discussions with international brands progress and new production lines continue, the next phase will focus on scaling exports of finished products and reinforcing Egypt’s position as a competitive manufacturing and textile hub.