European textile machinery makers see strong Egypt growth as Turkish and Chinese mills expand

European suppliers of textile machinery say they see strong growth potential in Egypt as foreign manufacturers set up and expand plants in the country. Executives from Oerlikon Barmag and FONG'S Europe made the comments in interviews with the trade publication Kohan Textile Journal at the Egypt Stitch & Tex 2026 exhibition in Cairo, published on 5 October 2026.

Jilali Lakraa, regional sales director at Oerlikon Barmag, a maker of man-made fibre spinning and texturing machinery that has worked in Egypt for about 45 years, said several Turkish companies are moving or expanding parts of their textile manufacturing in Egypt, while Chinese investors are developing significant projects. He said he had seen several Chinese textile projects operating and expanding during visits to the TEDA area in Sokhna.

"Egypt offers several important advantages, including its geographical position, infrastructure and comparatively competitive energy, labour and land costs." — Jilali Lakraa, Oerlikon Barmag

Lakraa also pointed to a shift in what Egyptian yarn makers want. In draw-textured yarn (DTY), he said, interest is growing in fancy yarns and effects such as cotton-like, wool-like, thick-and-thin and two-tone yarns, rather than commodity products. He added that upgrades to improve efficiency and cut energy use are becoming more important when markets are weak.

Thomas Walther, sales director at XORELLA, part of the FONG'S Europe group that also includes the FONG'S, THEN and GOLLER dyeing and finishing brands, said the company is seeing textile manufacturers and investors from Türkiye moving part of their production to Egypt and establishing new factories. He linked the trend to competitive labour and energy costs and Egypt's long history in cotton spinning. The group works in Egypt through its local partner NobelTex. Walther said automation is gaining ground even in lower-cost markets, although payback periods remain longer than in high-wage countries.

What it means for Egyptian exporters

When machinery suppliers report rising project activity, it usually signals new capacity coming on stream in the following years. For Egyptian exporters, that points to a deeper local supply of yarns, dyed and finished fabrics, which can shorten lead times for garment and home-textile orders to Europe. The move towards specialty yarns and energy-saving equipment also suggests where buyers and investors expect Egypt to compete: on value and efficiency, not only on cost.