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The Asian Development Bank (ADB) and Modern Syntex Limited (MSL) today signed a $50 million loan agreement to finance the Modern Energy-Efficient Polyester Chips Manufacturing Project in Bangladesh.
The financing will help MSL expand its polyester chips production capacity from 107 tonnes to 407 tonnes per day and refinance short-term local working capital loans, said a press release.
The expanded facility will produce high-intrinsic-viscosity polyester chips, which are used in higher-value textile and apparel products, according to an ADB press release.
“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 ADB Country Director for Bangladesh Qingfeng Zhang.
He said ADB's long-term financing would help MSL expand efficient domestic production, deepen backward linkages, strengthen supply chains and support higher-value textile manufacturing.
The project will also contribute to the development of the Mirsarai Economic Zone and support Bangladesh's efforts to attract investment, create jobs and enhance economic competitiveness, he added.
Under the project, MSL will introduce energy-efficient machinery that is expected to save around 4,840 megawatt-hours of electricity and reduce about 2,222 tonnes of carbon dioxide equivalent emissions annually.
The project will also help MSL pursue Leadership in Energy and Environmental Design (LEED) Platinum certification for its building and factory.
The expanded production is expected to strengthen Bangladesh's textile value chain by increasing domestic supplies of polyester chips, reducing dependence on imports, shortening lead times and improving efficiency for textile manufacturers.
The project is also expected to create around 100 new jobs and promote greater participation of women through inclusive recruitment practices.
“We greatly value ADB’s support as it enables MSL to significantly expand polyester chips production, strengthen local supply chains, and reduce dependence on imported inputs,” said MSL Managing Director Abu Sufian Chowdhury.
“By investing in advanced energy-efficient technology, we are improving our competitiveness while supporting a more sustainable textile industry. We believe this project will create long-term value for our customers, the manufacturing sector, and the broader economy,” he added.
MSL, a concern 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.
The company manufactures polyester chips, synthetic yarn and fiber, primarily for domestic textile manufacturers.
ADB is a multilateral development bank supporting sustainable, inclusive and resilient growth across Asia and the Pacific. Founded in 1966, ADB is owned by 69 members, 50 of them from the region.
