Switzerland’s textile machinery suppliers,
organized by the national association Swissmem, held a two-day symposium in
early April in Cairo, Egypt. The objective was to strengthen the already
well-established industrial ties between Egypt and Switzerland and to initiate
a major step towards the revival of the Egyptian textile manufacturing sector.
Textile production, using both local and
imported cotton, is a vital contributor to Egypt’s economy, ranking behind only
tourism and Suez Canal revenues in the generation of income. But the textile
sector’s performance and potential is being held back by financial constraints,
rooted in the serious economic downturn of recent years and the accompanying
severe devaluation of the Egyptian Pound.
Political instability since the revolution
of 2011 drove away both tourists and overseas investors. And it has thus far
hampered much-needed investment in new technology by the textile industry – so
that its resurgence is now overdue.
Switzerland’s textile machinery suppliers
have now initiated a major step towards revival of Egyptian textile
manufacturing, with a highly-successful two-day symposium (April 4-5, 2017) in
Cairo.
A total of 13 association member companies of
Swissmem presented their latest machines and systems to an audience of 400,
including representatives of the major textile producers from the private and
public sectors, as well as delegates from various universities and research
institutes.
Switzerland recognizes the enormous
potential for renewal of Egypt’s textile sector. The devaluations, while making
Egyptian goods theoretically more attractive in export markets, have also
seriously impacted on the cost and accessibility to Egypt’s textile companies
of new production technology from the major producers.
The Swissmem symposium addressed this issue
head-on, with direct offers of assistance in the key area of financing capital
imports. Ernesto Maurer, Swissmem President, told the symposium: “Switzerland
is ready to support Egypt in its striving to re-connect with the worldwide textile
community.”
He was referring to difficulties in
accessing foreign exchange funds and the high costs associated with this, which
have been a major obstacle to Egyptian companies seeking to renew their
equipment and take up new technology.
“Funds need to
be created prior to new investments, and here the Swiss textile machinery
companies can help,” he said. “Sometimes, it is also the case that service and
upgrade of existing equipment can be easier to achieve than complete renewal.”
Symposium participants heard a detailed
explanation of export risk insurance and financing, presented by Fabian
Brunschwiler, of SERV (Swiss Export Risk Insurance). His comments attracted
significant attention, especially in relation to the assertion that Egypt was not
yet making full use of the export finance facilities available from
Switzerland.
Swiss textile machinery producers enjoyed
strong export sales to Egypt in the years up to 2013, but the country’s
economic and political woes since then have seen shipments decline to only 20%
of previous levels. Now, as Egyptian textile manufacturers exhibit an eagerness
to expand their markets, improve production capability and product quality,
Swissmem is optimistic that it can offer both the financial and technological solutions
they require.
Said Ernesto Maurer remarked: “We are very
confident that Egypt will find a way back to its previous position of strength,
and its leading role in the world of high quality fabrics. The Egyptian cotton
brand ‘Giza 100’ once stood as a synonym for quality in textile raw materials.
Now, our Swiss textile machinery industry is an enthusiastic partner in
facilitating and stimulating this revival.”
The 13 Swissmem companies taking part in
the symposium were: Luwa, Amsler Tex, Heberlein, SSM Schärer Schweiter Mettler,
Saurer (Embroidery), Rieter Components (Bräcker, Graf, Nobibra and Süssen),
Stäubli, Jakob Müller, Retech, Loepfe, Maag, Benninger, and Santex-Rimar.