UK in £66m deal to build garment factories in Jordan
UK Export Finance (UKEF) yesterday announced the agreement, aimed at facilitating the construction of four factories for Classic Fashion Apparel Industry Group, which includes three satellite manufacturing units, thereby improving the Jordanian textile industry.
Classic Fashion provides a wide range of products including sportswear, outerwear, denim, twill, formal pants and workwear. Previous clients include Under Armour, Walmart, HanesBrands, Lands’ End, One Jeanswear Group, American Eagle Outfitters and Gap.
It produces around 550,000 garments a day and contributes more than 42% of all garment exports from Jordan, according to UKEF. The company produced 130 million garments in 2021 and expects production to reach 165 million garments this year.
UKEF is providing support through a combination of direct loans and a buyer credit guarantee, allowing Classic Fashion to move forward quickly with its project and benefit from its flexible repayment terms.
The planned new site, located in the Aqaba Special Economic Zone, is expected to create approximately 4,000 jobs for Jordanians by 2024. Jobs for the local community are offered at various levels, with potential for growth and opportunity to grow. to enter the garment manufacturing business. . The location is close to the port of Aqaba, which gives Classic Fashion an export advantage. The project will contribute to boosting exports and manufacturing jobs, in line with the objectives for the sector contained in the report recently launched by Jordan Vision of economic modernization 2033.
President and General Manager of Classic Fashion Apparel Industry, Sanal Kumar, said, “Classic Fashion is committed to giving its best to deserving people in rural areas of Jordan,” adding that it will focus on vertical expansion, bringing SME units into open source manufacturing. program of excellence and improved efficiency.
British Ambassador to Jordan, Ms Bridget Brind OBE, said of the agreement: “It will help create new jobs and increase exports, contributing to Jordan’s economic growth and future prosperity. I hope it can act as a success story that can inspire other similar agreements in the future for the benefit of Jordan and the UK.
Britain’s Minister of State for Asia and the Middle East, Ms Amanda Milling MP, who is visiting Jordan as part of a regional visit, has welcomed the initiative and the opening of a new factory of clothing and textiles in Aqaba.
UK support will extend beyond the funding scheme, as more than 30% of services and supplies for the project, such as machinery and other building materials, will come directly from UK suppliers.