UK Export Finance signs deal to build clothes factories in Aqaba

[29-06-2022 01:44 PM]

Ammon News - UK Export Finance (UKEF), the UK Government’s export credit agency, announced its first deal in Jordan to support Classic Fashion Apparel Industry in constructing four new garment factories and a corporate office in Aqaba.

The ?66million deal will facilitate the building of four factories, including three satellite manufacturing units as well as the Aqaba main facility, according to the United Kingdom's embassy statement on Wednesday.

This will enhance Jordan’s already strong textile industry.

UKEF has provided support through a combination of direct lending and a buyer credit guarantee, allowing Classic Fashion Apparel Industry to move swiftly with their project and benefit from flexible repayment terms, the statement added.

It noted that the new planned site in Aqaba Special Economic Zone is expected to create around 4,000 jobs for Jordanians by 2024. Jobs for the local community are offered at varying levels, with the potential to grow and the opportunity to enter the garment manufacturing business. This unique location is near Aqaba port and gives Classic Fashion Apparel Industry an exporting advantage.

This project will contribute to boosting manufacturing exports and jobs, in line with the targets for the sector contained in the recently launched Economic Modernisation Vision 2033.

The UK’s support will extend beyond the funding scheme, as more than 30% of the services and supplies for the project, such as machinery and other building materials, will come directly from UK providers.

ASGC UK, a leading British construction company in the region, will project, manage, and oversee all related elements to ensure quality and timely delivery.

Classic Fashion Apparel Industry Group is the largest apparel manufacturer in the MENA region. It produces around 550,000 garments per day and contributes to over 42% of all garment exports from Jordan.

The company produced 130 million garments in 2021 and expects production to grow to 165 million garments this year.

UK Minister of State for Asia and the Middle East, Amanda Milling, who is visiting Jordan as part of a regional visit, welcomed the initiative and the opening of a new apparel and textiles factory in Aqaba, which will create thousands of jobs in Jordan.

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