A Rising Denim Powerhouse Duo

“Two different continents sharing the same denim culture.”

That is how Cemil Kolunsag, a board member of Istanbul-based Cross Textiles, the parent company of CRS Denim Egypt, describes Turkey and Egypt—an increasingly powerful sourcing and manufacturing duo for the $66.67 billion global denim market.

With rising production costs and supply chain uncertainties, denim brands are looking for cost-effective, reliable alternatives. Egypt, due to its proximity to Europe and trade advantages, is experiencing a significant influx of interest and foreign investment, particularly from Turkey’s denim manufacturing sector.

In January, Turkish ready-made garment manufacturer Denim Rise revealed plans to invest $8.8 million in a new factory within Egypt’s Qantara West Industrial Zone. The Suez Canal Economic Zone (SCZONE) reported that the facility, set to open in the second half of 2025, will create 1,000 jobs and export 70 percent of its production.

Last year Eroğlu Holding unveiled plans to establish a $40 million ready-made garment factory in the same zone. The plant is expected to create more than 3,000 jobs. Additionally, Sharabati Denim, which produces denim and flats in Egypt and Turkey, announced a new production facility in Sadat City designed to accommodate around 2,000 workers. The facility includes two spinning halls, a warping and sizing hall, a gabardine weaving hall, and a shuttle loom weaving hall.

“There is the need to have a more stable cost situation, which is not the case in Turkey at the moment,” said Alessandro Moretti Ciacci, Sharabati Denim’s sales and marketing director. The competitive market is pushing many garment makers to look for an alternative in the Mediterranean area for quick and sustainable service, he added.

Sharabati produces an expansive range of denim and flats in both Egypt and Turkey. Production capacity is 100 million meters in Egypt and 45 million in Turkey. The company also has warehousing facilities in Tunisia and Morocco. Ranging from lightweight shirting fabrics to heavy weights, the mill’s collection has wide appeal across a variety of brands. Capsules like Dream of Nile, a denim line made with Egyptian cotton, and Loomers, a line of selvedge fabrics produced on vintage Rutti shuttle looms, resonates with clients seeking specialty fabrics.

In addition to having production facilities in Tekirdag and Tokat, Turkey, Cross Textiles has operated CRS Denim Egypt in Port Said for the last 15 years. The fully integrated facility aims to be a solution provider to clients by managing spreading, cutting, sewing, dry process, washing, finishing, ironing and packaging operations. CRS employees 2,200 people and has the annual production capacity is 6 million jeans. It’s clients European and American powerhouses in denim, including one of “the three big,” Kolunsag said.

“We find that Egypt is very well suited for denim production. “What we make in CRS we also make in Cross, and vice versa,” he said. “With that said we tend to make more bottoms and less tops in CRS than in Cross, simply based on demand.”

In recent years, DNM has seen a growing interest from denim brands and designers in Egypt. Sedat Sualp, deputy general manager of DNM Denim, said this surge is driven by the country’s cost efficiency, commitment to sustainable manufacturing practices, increasing infrastructure investments, and its strategically advantageous location. Transit times to the U.S. and EU are on par with other Mediterranean countries, while EU customers benefit from much shorter transit times compared to supplies from the Far East. Moreover, he said Egypt’s position as a crossroads between the Far East and Europe enhances its ability to source raw materials and chemicals efficiently.

“The ease of raw material supply, the growing demand for production capacity in Turkey, and rising costs are driving companies to expand their operations in Egypt,” Sualp said.

DNM Denim was established in 2011 in Damietta, Egypt, as a 100 percent Turkish capital investment initiative of Eroğlu Global Holding to produce denim fabric. It has a production capacity of 31 million meters of denim fabric per year in 150,000 square meters. To further meet the needs of new and existing clients, Sualp said DNM is currently increasing capacity up to a total of 3.5 million meters/month (up from 2.6 million meters/month), with full operational capacity planned for the end of 2025.

Advantageous trade agreements like Qualified Industrial Zones (QIZ) agreement with the U.S. and its duty-free trade access to the EU provide Turkish firms with a significant competitive edge. The QIZ initiative allows Egypt to export products to the U.S. duty-free if the products contain inputs from Israel, making it highly competitive for American brands.

Cost competitiveness is another area where Egypt excels. Sualp said lower labor and energy costs, along with investment incentives, make Egypt an attractive manufacturing hub. Labor costs are on par with Pakistan and Bangladesh.

Egypt’s skilled workforce and eco-friendly production technologies are drawing the attention of sustainable brands as well. “In the last few years, the focus has been sustainability, price and lead time,” Kolunsag said. “We see this continuing, and as brands are under increasing pressure both regarding EU-regulations and customer price sensitivity, the price and lead time parameters became more important than ever.”

As sustainability becomes a priority, Alice Tonello, R&D and marketing manager for Tonello, said Egyptian manufacturers investing in responsible production and advanced technology are set to gain a competitive edge.

The Italian finishing technology firm, which recently exhibited at the Denimandjeans Egypt trade show, is one of the companies providing innovative and sustainable technologies to help Egyptian factories enhance efficiency, meet global standards, and position themselves as reliable suppliers for top brands.

“While low-cost machinery remains common in the market, export-driven manufacturers are realizing the need to invest in high-quality equipment to compete internationally,” she said. “By supporting this shift, we contribute to the long-term competitiveness of the Egyptian denim industry.”

Egypt is also home to the largest cotton and textile producers on the African continent and in the world. Thanks to this tradition, Andrea Venier, managing director of the chemical firm Officina39, said the Egyptian textile industry is increasingly becoming a major player in the global textile market.

“Driven by a market seeking new production hubs, Egypt can certainly be one of the textile platforms of the future. The Egyptian government is strongly supporting the textile sector, to the extent that several manufacturing companies are interested in starting production in the country. This obviously shifts the focus to the entire supply chain and everything around it,” he said.

Although Officina39 is still familiarizing itself with the Egyptian market, Venier remains optimistic about the growing focus on innovation, cutting-edge solutions, and sustainability. “During our visits to potential Egyptian clients, we found a market eager for new products and innovation. With local textile companies seeking to expand their product lines both in quantity and quality, we’ve decided to invest time and resources to develop our business here,” Venier said.

While these advantages have encouraged increased investment in the country’s garment sector, producing denim in Egypt does come with a unique set of challenges.

“Despite improvements in the business environment, political and economic uncertainties remain factors to consider for long-term investments,” Sualp said. He named complex bureaucracy, infrastructure limitations, and currency fluctuations that impact costs as some of the hurdles. While labor is affordable, he said finding skilled workers for specialized production can be difficult.

Moretti Ciacci added that it is important for companies to good management, and possibly a local partner or an experienced advisor to help navigate bureaucracy. “For sure, Egypt’s supply chain needs to be expanded and fine-tuned to have the quality and service appropriate for export, but it will be improving very fast when considering the level of know how being transferred there,” he said.

This article was published in the SJ Sourcing Report. Click here to download.