In a significant move for Egypt’s growing textile and carpet manufacturing ecosystem, Turkish yarn giant Ulusoy Tekstil has signed an $18 million agreement with the Suez Canal Economic Zone (SCZONE) to establish a new yarn and textile factory in West Qantara.
The factory, which will span 35,000 square meters, is expected to create 855 direct jobs and significantly contribute to both Egypt’s export economy and local value chain development in the textile and carpet industries.
Ulusoy’s new facility will specialize in producing a wide range of yarns, including:
- Carpet yarns
- Fibre yarns
- Tricot yarns
- Hand-knitting yarns
- Household crochet yarns
Additionally, the factory will be involved in manufacturing and weaving ready-made garments. Notably, 80% of the production will be dedicated to export, with 20% serving the domestic Egyptian market, reinforcing SCZONE’s vision for becoming a regional hub for high-quality, export-driven textile and apparel manufacturing.
The agreement was signed by Waleid Gamal El-Din, SCZONE Chairperson, and Mohamed Ulusoy, legal representative of Ulusoy Tekstil, in the presence of senior officials and company executives.
“This project is a cornerstone in our plan to localize textile supply chains, from raw materials to finished garments,” said Gamal El-Din. “The strategic location of West Qantara and SCZONE’s integrated logistics corridors make it an ideal destination for international manufacturers like Ulusoy.”
With this being the 24th agreement signed in West Qantara, total investments in the zone have now reached $661.5 million, generating over 34,000 direct job opportunities. The new factory supports Egypt’s broader strategy of boosting labour-intensive industries, enhancing local manufacturing capabilities, and reducing dependency on imported raw materials in the yarn and carpet sectors.
Founded in 1986, Ulusoy Tekstil is one of Europe’s largest yarn producers, operating two expansive facilities in Turkey with a combined production capacity exceeding 1,000 tonnes per month. The company exports high-quality yarns globally and is known for its vertically integrated production model.
This latest investment marks a powerful step toward positioning Egypt as a key player in regional and global textile and carpet value chains, with Ulusoy bringing its deep industry expertise and global network to the Egyptian market.
