The Asian Development Bank (ADB) has provided a $50 million loan to Modern Syntex Limited (MSL), a TK Group concern, to expand polyester chip production capacity and reduce Bangladesh’s dependence on imported synthetic textile inputs.
The financing agreement for the Modern Energy-Efficient Polyester Chips Manufacturing Project was signed on Tuesday, with the expansion expected to increase MSL’s polyester chip production capacity from 107 tonnes to 407 tonnes per day.
The expanded facility will produce high intrinsic viscosity polyester chips, a higher-value input used in textile and apparel manufacturing.
ADB Country Director for Bangladesh Qingfeng Zhang said the financing would help MSL expand efficient domestic production, strengthen backward linkages and improve supply chain resilience in Bangladesh’s textile sector.
“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,” he said.
The project will also support the development of the Mirsarai Economic Zone, attract investment, create jobs and enhance Bangladesh’s manufacturing competitiveness, Zhang added.
MSL will use the financing to expand production and refinance short-term local working capital loans.
The project includes the installation of energy-efficient machinery, which is expected to save around 4,840 megawatt-hours of electricity annually and reduce carbon dioxide equivalent emissions by about 2,222 tonnes a year.
The facility will also support MSL’s efforts to secure Leadership in Energy and Environmental Design (LEED) Platinum certification for its factory and building.
MSL Managing Director Abu Sufian Chowdhury said the financing would help the company expand polyester chip production, strengthen local supply chains and reduce reliance on imported raw materials.
“By investing in advanced energy-efficient technology, we are improving our competitiveness while supporting a more sustainable textile industry,” he said.
The expansion is expected to strengthen Bangladesh’s textile value chain by increasing local availability of polyester chips, reducing import dependence, shortening lead times and improving efficiency for textile manufacturers.
The project is also expected to create around 100 jobs and increase women’s participation through inclusive recruitment practices.
MSL operates Bangladesh’s first continuous polymerisation facility at the Mirsarai Economic Zone in Chattogram. The company manufactures polyester chips, synthetic yarn and fibre, mainly for domestic textile manufacturers.
ADB said its long-term financing would support Bangladesh’s efforts to develop sustainable and inclusive industrial growth while improving competitiveness in export-oriented manufacturing.
