Xin Fengming group invests $280m in Egyptian fiber project

Xin Fengming Group Co., Ltd. is investing approximately $280 million in a new 360,000-ton/year functional fiber project in Egypt. The project will be managed by Xin Fengming New Materials Co., Ltd., a newly established entity with Hong Kong Industrial Co., Ltd. holding 70% equity and Bess Road Development Co., Ltd. holding 30%. This strategic investment aligns with the company's goal to optimize resource allocation, enhance international influence, and strengthen market competitiveness by establishing an overseas base.

The project, which has an expected construction period of 24 months and a projected investment return rate of 15.28%, is set to commence operations around May 28, 2026, pending final approval. It will involve building POY, FDY, and DTY manufacturing facilities on 360 acres of land within the China-Egypt TEDA Suez Economic and Trade Cooperation Zone. The investment is funded by the company's own funds and bank financing.

The venture seeks to mitigate trade barriers and benefit from Egypt's favorable geographical location and "Belt and Road" initiative cooperation. However, the company highlights potential risks, including product price volatility, raw material supply fluctuations, market demand uncertainties, and the inherent challenges of overseas investments, such as infrastructure and geopolitical stability.