The Asian Development Bank (ADB) has committed a $50 million loan to Modern Syntex Limited (MSL), part of TK Group, to start an energy-efficient polyester chip plant in Bangladesh.
Proceeds will fund a near-quadrupling of MSL’s daily chip output, from 107 tonnes to 407 tonnes, and replace short-term domestic working capital borrowings.
The enlarged line will turn out high-intrinsic-viscosity polyester chips, a grade aimed at premium textile and apparel applications.
Qingfeng Zhang, ADB’s country director for Bangladesh, noted that textiles and ready-made garments remain a pillar of the national economy yet depend heavily on imported synthetic raw materials.
He said the bank’s long-tenor funding would enable MSL to scale up efficient local output, build backward linkages, fortify supply chains and move the sector towards higher-value fabrics.
The scheme will also feed into the growth of the Mirsarai Economic Zone, backing the government’s drive to draw investment, generate employment and sharpen national competitiveness.
On sustainability, the installation of energy-saving equipment should cut electricity consumption by roughly 4,840 megawatt-hours and avoid around 2,222 tonnes of CO2 equivalent annually.
ADB said in a statement that the investment will also assist MSL in targeting Leadership in Energy and Environmental Design (LEED) Platinum certification for its factory and building.
Across the industry, the project is projected to reinforce Bangladesh’s textile value chain by lifting local polyester chip availability, trimming import dependence, shortening lead times and raising efficiency among downstream manufacturers.
Around 100 new positions will be created, with inclusive hiring practices intended to widen female participation.
MSL Managing Director Abu Sufian Chowdhury welcomed the support, saying it would let the company lift chip output substantially, tighten domestic supply chains and lessen reliance on imported inputs.
He added that advanced, energy-saving technology would sharpen competitiveness while pushing the textile sector towards greater sustainability, and expressed confidence that the project would deliver lasting value for customers, manufacturers and the wider economy.
MSL runs Bangladesh’s first continuous polymerisation plant, sited in the Mirsarai Economic Zone in Chattogram, within easy reach of major port and logistics infrastructure.
Its product range spans polyester chips, synthetic yarn and fibre, supplied chiefly to domestic textile producers.
Image courtesy: Decon
