Chattogram:The Asian Development Bank (ADB) and Modern Syntex Limited (MSL) have signed a $50 million loan agreement to fund the Modern Energy-Efficient Polyester Chips Manufacturing Project in Bangladesh. This initiative aims to expand MSL's polyester chips production capacity significantly.
According to United News of Bangladesh, the financing will enable MSL to increase its production capacity from 107 tons to 407 tons per day and refinance short-term local working capital loans. The facility will utilize advanced machinery to produce high intrinsic viscosity polyester chips, crucial for higher-value textile and apparel products.
The project is designed to incorporate energy-efficient technology, saving approximately 4,840 megawatt-hours of electricity annually and reducing carbon dioxide emissions by about 2,222 tons each year. MSL is also aiming for LEED Platinum certification for its building and factory, showcasing its commitment to sustainability.
This expansion is poised to bolster Bangladesh's textile value chain by increasing the domestic supply of polyester chips, thereby reducing the need for imports and improving efficiency for local manufacturers. It is anticipated to create around 100 new jobs and encourage the inclusion of women through targeted recruitment practices.
MSL Managing Director Abu Sufian Chowdhury expressed appreciation for ADB's support, highlighting the project's potential to expand production, enhance local supply chains, and decrease reliance on imported materials. He emphasized the investment in energy-efficient technology as a means to boost competitiveness and promote a sustainable textile industry.
MSL, a part of the T.K. Group, operates Bangladesh's first continuous polymerization facility located in the Mirsarai Economic Zone in Chattogram. The company specializes in producing polyester chips, synthetic yarn, and fiber for the domestic market.
ADB Country Director for Bangladesh Qingfeng Zhang noted the critical role of Bangladesh's textile and ready-made garment industry in the economy. He stated that ADB's long-term financing would assist MSL in expanding efficient domestic production, enhancing supply chains, and supporting higher-value textile manufacturing. The project is expected to contribute to the development of the Mirsarai Economic Zone, attract investment, and boost economic competitiveness in Bangladesh.