UK Export Finance (UKEF) announced the deal yesterday, aimed at facilitating the construction of four factories for Classic Fashion Apparel Industry Group, which include three satellite manufacturing units, enhancing Jordan’s textile industry.
Classic Fashion supplies a wide range of products including activewear, outerwear, denim, twill, formal pants and work-wear. Previous customers include Under Armour, Walmart, HanesBrands, Lands’ End, One Jeanswear Group, American Eagle Outfitters and Gap.
It produces around 550,000 garments per day and contributes to over 42% of all garment exports from Jordan, says UKEF. The company produced 130 million garments in 2021 and expects production to grow to 165 million garments this year.
The UKEF is providing support through a combination of direct lending and a buyer credit guarantee, allowing Classic Fashion to move quickly with its project and benefit from its flexible repayment terms.
The new planned site, located 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 business of garment manufacturing. The location is near Aqaba port, giving Classic Fashion an exporting advantage. The project will contribute to boosting manufacturing exports and jobs, in line with the targets for the sector contained in Jordan’s recently launched Economic Modernisation Vision 2033.
Classic Fashion Apparel Industry chairman and managing director Sanal Kumar said: “Classic Fashion is committed to giving its best to the deserving people in the rural areas of Jordan,” adding that it would focus on vertical expansion, bringing SME units into open-source manufacturing excellence program, and efficiency enhancement.”
British Ambassador to Jordan Ms Bridget Brind OBE said of the deal: “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 which can inspire more similar agreements in the future for the benefit of Jordan and the United Kingdom.”
UK Minister of State for Asia and the Middle East, Ms Amanda Milling MP, 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.
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 from directly from UK providers.