The Asian Development Bank (ADB) and Modern Syntex Limited (MSL) on Tuesday signed a $50 million loan for the Modern Energy-Efficient Polyester Chips Manufacturing Project in Bangladesh.
The financing will support MSL's expansion of polyester chips production capacity from 107 tonnes to 407 tonnes per day and refinance short-term local working capital loans.
The expanded facility will produce 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 ADB country director for Bangladesh Qingfeng Zhang.
"ADB's long-term financing will 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."
The project will introduce energy-efficient machinery, expected to save about 4,840 megawatt-hours of electricity and reduce about 2,222 tonnes of carbon dioxide equivalent emissions each year.
It will also help MSL pursue Leadership in Energy and Environmental Design (Leed) Platinum certification for its building and factory.
The project is expected to strengthen Bangladesh's textile value chain by increasing domestic supply of polyester chips, reducing reliance on imports, shortening lead times, and improving efficiency for textile manufacturers.
It will also create about 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.”
MSL is part of TK Group and operates Bangladesh's first continuous polymerization facility, strategically located in the Mirsarai Economic Zone in Chittagong, close to major port and logistics infrastructure.
The company manufactures polyester chips, synthetic yarn, and fiber, primarily for domestic textile manufacturers.
