ADB, Modern Syntex sign $50m loan deal
The Asian Development Bank (ADB) and Modern Syntex Limited (MSL) have signed a $50 million loan agreement to expand energy-efficient polyester chips production in Bangladesh.
The agreement was signed on Tuesday for the Modern Energy-Efficient Polyester Chips Manufacturing Project, according to an ADB press release.
The financing will support MSL’s expansion of its production capacity from 107 tonnes to 407 tonnes per day. It will also refinance the company’s short-term local working capital loans.
The expanded facility will produce high-intrinsic-viscosity polyester chips, which are 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.
He said the financing would help MSL increase domestic production, strengthen local supply chains and support higher-value textile manufacturing.
The project will introduce energy-efficient machinery, which is expected to save around 4,840 megawatt-hours of electricity and reduce about 2,222 tonnes of carbon dioxide equivalent emissions annually.
MSL will also pursue Leadership in Energy and Environmental Design (LEED) Platinum certification for its building and factory under the project.
The expansion is expected to increase the domestic supply of polyester chips, reduce import dependence, shorten lead times and improve efficiency for textile manufacturers.
The project will also 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.
He said the company’s investment in energy-efficient technology would improve its competitiveness while supporting the textile industry.
MSL, a company of TK Group, operates Bangladesh’s first continuous polymerisation facility in the Mirsarai Economic Zone in Chattogram.
The company manufactures polyester chips, synthetic yarn and fibre, mainly for domestic textile manufacturers. Its facility is located close to major port and logistics infrastructure.
