The Cotton Spinning and Weaving Holding Company has adopted the policy of renting out faltering factories to develop them. This is a move welcomed by rights groups and people against the privatization of industry, the latter which would only support it if workers were able to keep their jobs.
Company chairman Ahmed Mostafa, who owns 32 other companies affiliated with the business sector, said the Daqahliya factory will be rented out to a Saudi company so as to take advantage of the workforce and develop production lines.
The renting out of factories, according to Mostafa, comes within the company’s plans and has been approved by the Cabinet. The strategy also includes the transferring of eight factories from residential locations. The land on which they are located will be sold and the profits of the sales will go toward establishing new factories, all the while keeping the laborers employed.
Mostafa mentioned two offers from interested parties, one Saudi and one Kuwaiti, that are willing to invest in spinning companies. He added that the company received two Saudi and Kuwaiti delegations. The Saudi company is considering pumping investments in factories affiliated to the company and has already visited three factories in Mansoura, Zagazig and Alexandria.
Regarding the restructuring of the 32 companies, Mostafa said, “We will not approach the assets of the companies as we ruled this out of the plan. They will be offered for renting or partnership through the lands or equipment.”
Meanwhile, Abdel Ghaffar Maghawry, defense lawyer in privatization lawsuits said, “There is no problem associated with renting the faltering factories while keeping the laborers.”
Edited translation from Al-Masry Al-Youm
