AlSaraTex Co. has invested in four new flat Knitting machines using modern technology, to replace existing old and less energy-efficient ones. The new machines are equipped with a new automatic winder to increase productivity. The production process is composed of three major divisions, preparations (converting the raw material of acrylic tow to a consistent sliver), spinning (spinning the sliver to produce yarn on spools), and winding (winding the spools onto a cone while reviewing the yarn for any defects).
AlSaraTex Co. is an Egyptian SME specialized in manufacturing of high-quality yarns and sells its products to businesses in both local and export markets. AlSaraTex yarns range from a variety of quality fibres, including acrylic, wool, viscose, polyester, polyamide, linen, and their blends of yarn.
The company aims to improve the quality of its products and restructure its production capabilities to accelerate its sales growth plan though investing in modern technologies.
The investment in the four new flat knitting machines will enhance the competitiveness of the company through improving final product quality and increasing productivity while decreasing operational costs. AlSaraTex will be able to produce almost twice as many kilograms with the same number of spindles per day, while reducing energy consumption, as well as manufacture a better-quality yarn.
The GVC facility is providing financing for AlSaraTex’s investment in the new technology which will enable the company to differentiate its product offering and strengthen the local textiles production value chain. The GVC team provided technical assistance in the selection of an appropriate technology that can support improvements in product quality and operational performance and boost sales growth and the company’s competitiveness. The investment incentive provided under the facility has incentivized the company to invest is best-in-call technology that will help enhance the company’s profitability.
The US$ 302,480 investment is expected to increase production capacity from 450 tons to 900 tonnes annually and profits will increase by approx. US$ 48,240 (100%) due to the company’s ability to respond to the increasing market demand for its product and accordingly, increase sales. This will result in increased exports to the company’s target markets such as Kenya, Peru, Lebanon, and Syria. It is estimated that the investment will result in 68 MWh/year of energy savings and 33 tCO2eq, equivalent to the emissions of 4,014,207 smartphones charged.
Egypt Green Value Chain Financing Facility was developed by the European Bank for Reconstruction and Development (EBRD) and is financially supported by the Green Climate Fund (GCF), the European Union (EU) and the EBRD Shareholder Special Fund (SSF).
The Sub-borrowers receive an investment incentive for successful project implementation, provided by a grant from the EU.
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