Oriental Weavers (ORWE.CA) announced that it is seeking to inject USD83mn worth of new investments over the next five years (including 2016; to be financed internally and through medium term loans), which will be directed towards boosting annual production capacity by 33mn sqm. The company’s expansion plan includes installing four new Gobelin looms each adding 67.5k sqm of production capacity at a cost of EUR340k, one woven loom (five meters wide) at a cost of cUSD1mn and a new loom at OW USA at a cost of USD1.4mn adding 500k sqm of capacity as well as rehabilitating the nylon thread production line at MAC (1,938 tonnes capacity) at EUR2.49mn and non-woven line at EFCO (7.8mn sqm) at USD610k. Additionally, the company has finished installing four new looms at Oriental Weavers Textiles and this will add a further seven in the coming months at a total cost of USD14.5mn with added capacity of 5-7mn sqm. Also OW is adding 1mn sqm of warehousing capacity in the US at USD2.5mn to meet growing online sales (over 20% of US revenue) as well as a digital printing line at EFCO at a cost of USD1.14mn. Management expects growth in non-woven carpets for the rest of the year to exceed the 20% achieved in 1H16. (Company disclosure)   Oriental Weavers: EGP5.95 as of 4 August 2016, Rating: Buy, FV: EGP10.30 per share, MCap: USD302 mn, ORWE EY / ORWE.CA