The Asian Development Bank (ADB) and Bangladesh’s Modern Syntex Limited (MSL) signed a $50 million loan agreement on Tuesday to nearly quadruple polyester chips output, a move aimed at cutting the country’s heavy reliance on imported synthetic inputs for its garment industry.
The financing will lift MSL’s production capacity from 107 tonnes to 407 tonnes per day and refinance short-term local working capital loans, ADB said in a statement. The expanded plant will make high intrinsic viscosity polyester chips used in higher-value textile and apparel products.
“Bangladesh’s textile and ready-made garment industry is a key driver of the economy, but it continues to rely heavily on imported synthetic inputs,” said Qingfeng Zhang, ADB’s country director for Bangladesh.
Zhang said the long-term financing would help deepen backward linkages, strengthen supply chains and support development of the Mirsarai Economic Zone, while helping attract investment, create jobs and enhance economic competitiveness.
Also Read: Bangladesh Targets $3 Billion Japan Apparel Exports Via New BGMEA Desk
The project will install energy-efficient machinery expected to save about 4,840 megawatt-hours of electricity and cut roughly 2,222 tonnes of carbon dioxide equivalent emissions a year. MSL will also pursue Leadership in Energy and Environmental Design (LEED) Platinum certification for its building and factory.
The expansion is expected to raise domestic supply of polyester chips, reduce import dependence, shorten lead times and improve efficiency for textile manufacturers. It is projected to create about 100 new jobs and promote greater participation of women through inclusive recruitment.
“By investing in advanced energy-efficient technology, we are improving our competitiveness while supporting a more sustainable textile industry,” said MSL Managing Director Abu Sufian Chowdhury.
MSL, part of T.K. Group, operates Bangladesh’s first continuous polymerization facility in the Mirsarai Economic Zone in Chattogram, close to major port and logistics infrastructure. It makes polyester chips, synthetic yarn and fibre, mainly for domestic textile manufacturers.