Stitching the right patterns for growth

Dong Xianhui, general manager of Ya'ou Textile Factory, stands in his factory in the China-Egypt Suez Economic and Trade Cooperation Zone near the Suez Canal in Egypt. FU JING/CHINA DAILY

Egypt's turbulent past left the hopes of one Chinese textile entrepreneur in tatters, but gradually business is recovering, reports Fu Jing.

Dong Xianhui's five years running a small carpet and blanket factory in Egypt have been turbulent to say the least - everything from changes of government to economic slowdown, rising wages and import tariffs.

But a lifetime spent in the rag trade has taught the young general manager to be resilient, and he says he is starting to see signs of light at the end of what at times has been a long tunnel.

"The unrest in Egypt had an overwhelming impact on our business here, and I have been taught to be cautious and confident at the same time," said the 25-year-old, whose Ya'ou Textile Factory is based in the China-Egypt Suez Economic and Trade Cooperation Zone, about half an hour's drive from the Suez Canal.

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The factory is one of 30 Chinese projects in the zone, which has been created in desert surroundings just a few kilometers from the shores of the Red Sea.

Dong's plant consists of a standard 2,700 square meter workshop and 8,000 sq m of storage.

His products are targeted at only the Egyptian market, which enjoys its best sales in winter, but he said the factory's proximity to the main population centers offers him a perfect location.

Ya'ou Textile made its first push into Egypt in 2009, after setting up operations in five other countries.

"We quickly realized that Egypt is a really tough market," Dong said, "even without a revolution."

Dong's father, a weaver, started the family firm in the 1990s from scratch in his hometown of Wenzhou, Zhejiang province, a city famous for entrepreneurs.

Dong senior had previously traded in carpets and blankets, mainly in the Xinjiang Uygur autonomous region.

"The business was small then, but I grew up with it, understanding from a young age what hardships were involved in running a small business," Dong said.

Working in Xinjiang provided him with valuable lessons in dealing with people in an Islamic culture, he said.

"This was very helpful for me when I came to Egypt - I understood how to respect people from different cultural backgrounds," he said.

His parents started their first textile factory a decade ago with just one loom.

"We even had to borrow money to buy that," he said. "But my father's courage in starting from nothing is something that I am very proud of."