Kingdom Group’s Egypt Flax-Yarn Plant Targets First-Quarter 2027 Startup
China’s Kingdom Group plans to begin operating its flax-yarn factory in Egypt’s Sadat City during the first quarter of 2027. The project is intended to add local processing capacity, improve Egyptian flax fiber quality and connect domestic suppliers with the group’s international customers.
Factory scheduled for first-quarter launch
China’s Kingdom Group plans to begin operating its flax-yarn factory in Egypt during the first quarter of 2027, according to Mubasher. The plant is under construction in the industrial zone of Sadat City and covers 50,000 square meters. Construction began last year, although the report did not disclose the project’s investment value or planned annual production capacity.
The timetable was discussed during a meeting between Egyptian Industry Minister Khaled Hashem and a Kingdom delegation led by group chairman Ren Weiming. The parties reviewed construction progress and possible cooperation to strengthen Egypt’s local flax suppliers. Kingdom also presented a proposal covering the development of Egyptian flax from seed production through processing and export.
Kingdom brings an established export network
Kingdom was founded in 1979 and has been China’s largest exporter of pure flax yarn for 15 consecutive years, Mubasher reported. The company accounts for 52% of China’s total pure flax-yarn exports and sells to more than 20 countries and regions, including major markets in Europe and Asia.
That international footprint could give the Egyptian operation access to an established customer network once production starts. The factory’s immediate role will be to manufacture flax yarn, moving Egyptian flax further along the value chain instead of exporting more of the material in an unprocessed form. The source did not specify how much of the factory’s output will be sold domestically or exported.
Egypt seeks a broader flax value chain
Hashem said flax occupies an important place in the Industry Ministry’s strategy. The government wants to deepen domestic manufacturing, increase exports and integrate Egyptian flax more closely into global supply chains. It sees the country’s existing industrial base as an opportunity to convert local raw material into higher-value products.
The ministry wants the Kingdom investment to stimulate connected activities beyond yarn production. Its stated priorities extend from improving and preparing flax fiber to spinning, weaving, dyeing and finishing, followed by the manufacture of fabrics, clothing, furnishings and other finished products. Developing these stages would allow a larger share of the crop’s value to remain within Egypt and could create demand for specialized industrial labor and technology.
A central issue will be supplier qualification. The ministry and Kingdom intend to work on improving the quality and competitiveness of Egyptian flax and helping local suppliers meet international technical specifications. This is expected to support a gradual increase in the use of Egyptian flax fiber at the plant, improve locally produced yarn and connect Egyptian manufacturers with Kingdom’s customers and overseas markets. Ren said the group was ready to help local suppliers raise their efficiency and produce fiber suitable for industrial use, while encouraging investment both upstream and downstream of spinning.
