Bangladesh’s leading industrial conglomerate TK Group is moving to strengthen the country’s synthetic textile base with a fresh $7.5 million investment aimed at increasing high-value polyester yarn production, industry officials said.
The investment will be implemented through its subsidiary Modern Syntex Ltd., which has recently secured an additional 3.75 acres of land at the National Special Economic Zone. The land lease agreement was formally signed on April 15 at the Dhaka office of the Bangladesh Economic Zones Authority, marking another step in the company’s ongoing expansion within the country’s largest planned economic zone.
The latest expansion is designed to increase the production of high-value polyester yarn, a key raw material widely used across the textile and industrial sectors. The move reflects Bangladesh’s broader strategic push to develop backward linkage industries and reduce heavy reliance on imported synthetic fibres, which currently dominate the domestic supply chain.
Modern Syntex has already established a large-scale manufacturing facility within the economic zone, built with an investment of approximately Tk 1,700 crore.
The plant incorporates advanced European technology, including German-origin systems, and is recognized as Bangladesh’s first continuous polymerization facility for man-made fibre production. Industry insiders say such technology enables consistent quality, efficiency and scalability, positioning the company as a key player in the country’s evolving synthetic fibre segment.
The existing facility has a daily production capacity of around 460 tonnes and manufactures a range of import-substituting products such as polyester draw textured yarn (DTY), fully drawn yarn (FDY), polyester staple fibre (PSF), and polyethylene terephthalate (PET) chips. These products are essential inputs for a wide variety of downstream applications, including garments, home textiles and industrial materials.
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Polyester yarn, often blended with cotton, is extensively used in the production of T-shirts, sportswear, curtains, bed linens, ropes and tyre cords. Its durability, versatility and cost efficiency have driven growing demand globally, particularly as manufacturers look for alternatives to cotton amid price volatility and supply constraints.
Despite strong demand, Bangladesh continues to import a significant share of its polyester and synthetic yarn from countries such as China, India, Indonesia and South Korea. Industry stakeholders note that expanding local production capacity could significantly reduce import dependency, conserve foreign exchange reserves and shorten supply lead times for exporters.
According to company officials, the current operations of Modern Syntex already meet roughly 45% of domestic demand for certain synthetic yarn products. The new investment is expected to further increase output and strengthen the company’s ability to cater to both domestic and international markets.
“Leveraging the support of BEZA, we have developed a modern, technology-driven and environmentally compliant manufacturing facility at the economic zone, which we are now expanding to meet rising demand,” said Abu Sufian Chowdhury, Managing Director of Modern Syntex Ltd.
Industry leaders have welcomed the move, highlighting its potential to address long-standing gaps in Bangladesh’s backward linkage industries. Mizanur Rahman, Vice President (Finance) of the Bangladesh Garment Manufacturers and Exporters Association, said that local capacity in synthetic fibre production remains insufficient, particularly in high-value segments.
“Investment in high-value polyester yarn production will play a critical role in strengthening the backward linkage of the textile sector,” he said, adding that initiatives by large industrial groups such as TK Group are encouraging further private sector participation.
He also noted that supportive policies and improved infrastructure could attract more investors into the sector, ultimately enhancing the competitiveness of Bangladesh’s apparel exports in global markets.
The expansion project is expected to create approximately 120 new jobs, contributing to local employment and industrial growth. Company officials added that Modern Syntex has already exported products worth around $30 million, in addition to supplying major domestic textile manufacturers including Square Textiles, DBL Group, Envoy Group and Fakir Fashion.
Mustafizur Rahman, Director of TK Group, said the investment aligns with global market trends where demand for man-made fibres is steadily increasing. “As the global textile industry shifts toward synthetic alternatives, expanding high-value polyester yarn production is both a strategic and timely initiative,” he said.
Officials from Bangladesh Economic Zones Authority said such investments are crucial for accelerating industrialization and reducing reliance on imports. They reaffirmed the authority’s commitment to providing a business-friendly environment and facilitating both local and foreign investments.
The National Special Economic Zone, spanning a 25-kilometre coastal area, is being developed as the country’s largest economic zone, with around 15 industries already in operation and approximately 20 more under construction.
As Bangladesh continues its transition toward higher-value textile production, investments in synthetic fibre manufacturing are expected to play an increasingly important role in sustaining export growth and improving supply chain resilience.
