Oriental Weavers Eyes EGP100 Million Investments by 2015

Egypt’s Leading Carpet manufacturer,Oriental Weavers (OW) (ORWE.CA) is planning to invest EGP100 million to buy new looms, it said in statement on Wednesday.

Oriental weavers said that 11 looms will be delivered in the first few months of 2015, in addition to buying a new preparation line to accommodate for the increase in production capacity.

The equipment will allow the company to replace old looms, in addition to increasing production capacity by 13% in carpets due to the high technology of the looms and bigger width with the additional production of Gobelin types, it added.

The firm said this was due to the high demand in the local and global market.

Oriental weavers said its negotiating with a bank to obtain a medium term loan worth US$10 million.

The company is trying to achieve a growth in consolidated sales for 2014 by 708%, and to attain better growth in 2015 when it operates the new looms to reach 10-12%, in accordance to the market demands, it added.

Furthermore, Investments for a new industrial complex worth EGP1.4 billion was announced a year ago, the company said a yarn factory was built worth EGP450 million and started production in 2013.