Egypt’s Samannoud Textile returns to production after NIB-led restructuring
Egypt’s National Investment Bank (NIB) has returned Samannoud Textile and Woollen Company to production after completing a restructuring programme that included fresh financing, operational upgrades and debt settlements, the Ministry of Planning and Economic Development said on Thursday.
The bank, which owns a 52 per cent stake in the company, injected more than 74 million Egyptian pounds in financing and capital contributions to provide the working capital needed to restart operations after the manufacturer had come to a standstill.
The restructuring programme also included administrative and technical support to modernise production lines, diversify the company’s product portfolio and improve operational efficiency, enabling the company to resume production and meet part of its financial obligations through operating revenues, the ministry said.
As part of the restructuring, monthly wages for the company’s 563 employees increased to about 1.87 million pounds by October 2024 from around 900,000 pounds in the 2019/20 financial year. The programme also included the phased implementation of National Council for Wages decisions, regular and exceptional pay increases, and the settlement of voluntary retirement packages for 185 female employees.
The ministry said it had coordinated with the General Authority for Health Insurance and the National Organisation for Social Insurance to restructure the company’s outstanding liabilities, maintain healthcare services for employees and safeguard the rights of creditor institutions.
Planning and Economic Development Minister Ahmed Rostom said the restructuring formed part of a broader programme to overhaul the National Investment Bank and its affiliated companies, with the support of Prime Minister Mostafa Madbouly.
He said the programme aimed to strengthen the financial and operational performance of state-owned companies while preserving jobs and supporting the revival of productive industrial assets.