Modern Syntex Secures $50M Loan to Expand Polyester Capacity

by · WWD
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.Courtesy

Modern Syntex has secured a $50 million loan from the Asian Development Bank (ADB) to nearly quadruple its polyester chips production capacity in Bangladesh.

The agreement, signed Sept. 29, will support an increase in capacity from 107 tons to 407 tons per day and refinance short-term local working capital loans. The expanded facility will produce high-intrinsic-viscosity polyester chips for higher-value textile and apparel products, according to ADB.

The financing targets a gap in Bangladesh’s textile supply chain: its reliance on imported synthetic inputs. ADB said expanding domestic production could reduce import dependence and shorten lead times for textile manufacturers.

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“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 Qingfeng Zhang, ADB’s country director for Bangladesh. “ADB’s long-term financing will help MSL expand efficient domestic production, deepen backward linkages, strengthen supply chains, and support higher-value textile manufacturing.”

Modern Syntex, part of the T.K. Group, operates what ADB describes as Bangladesh’s first continuous polymerization facility in the Mirsarai Economic Zone in Chattogram. The company produces polyester chips, synthetic yarn and fiber, primarily for domestic textile manufacturers.

The project will introduce machinery that ADB expects to save about 4,840 megawatt-hours of electricity and avoid about 2,222 tons of carbon dioxide equivalent emissions annually. The bank’s announcement does not specify the comparison baseline for those estimates.

Modern Syntex will also pursue Leadership in Energy and Environmental Design (LEED) Platinum certification for its building and factory as part of the project.

“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 Abu Sufian Chowdhury, Modern Syntex’s managing director. “By investing in advanced energy-efficient technology, we are improving our competitiveness while supporting a more sustainable textile industry.”

ADB said the project is expected to create about 100 jobs and encourage greater participation by women through inclusive recruitment practices.

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