The Asian Development Bank and Modern Syntex Limited have signed a $50 million loan agreement to expand energy-efficient polyester chips production in Bangladesh, supporting the country’s efforts to reduce dependence on imported synthetic textile inputs.
Signed on September 29, the financing will increase Modern Syntex’s production capacity from 107 tonnes to 407 tonnes per day. Part of the package will also refinance the company’s short-term local working capital loans.
Capacity to Rise by 300 Tonnes Per Day
The Modern Energy-Efficient Polyester Chips Manufacturing Project will add 300 tonnes of daily production capacity at the company’s facility in the Mirsarai Economic Zone in Chattogram.
The expanded plant will manufacture high-intrinsic-viscosity polyester chips used in higher-value textile and apparel products. Increasing domestic availability could help Bangladesh’s textile manufacturers reduce their exposure to imported synthetic raw materials while shortening procurement lead times.
Bangladesh has developed one of the world’s largest ready-made garment industries, but its synthetic textile supply chain remains dependent on imported inputs. Expanding local polyester chip production could strengthen backward linkages between polymer manufacturing, synthetic fibre and yarn production, textile processing and garment manufacturing.
ADB Country Director for Bangladesh Qingfeng Zhang said the long-term financing would support efficient domestic production, strengthen supply chains and contribute to higher-value textile manufacturing.
The project is also expected to support further industrial development in the Mirsarai Economic Zone, where the facility’s proximity to port and logistics infrastructure provides access to domestic manufacturers and imported raw materials.
Energy-Efficient Machinery to Cut Electricity Use
Modern Syntex will install energy-efficient machinery as part of the expansion. The new equipment is expected to save approximately 4,840 megawatt-hours of electricity annually.
ADB estimates that the project will also reduce emissions by around 2,222 tonnes of carbon dioxide equivalent each year. Modern Syntex will pursue LEED Platinum certification for the building and factory, placing energy and environmental performance at the centre of the expansion.
Alongside its environmental objectives, the project is expected to create approximately 100 new jobs. Modern Syntex will also seek to increase women’s participation in its workforce through inclusive recruitment practices.
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Strengthening Bangladesh’s Synthetic Textile Supply Chain
Modern Syntex Managing Director Abu Sufian Chowdhury said the financing would allow the company to expand polyester chip production, strengthen local supply chains and reduce reliance on imports.
He added that investment in advanced energy-efficient technologies would improve the company’s competitiveness while supporting a more sustainable domestic textile industry.
Modern Syntex, part of TK Group, operates what ADB describes as Bangladesh’s first continuous polymerisation facility. The company manufactures polyester chips, synthetic yarn and fibre, primarily for domestic textile producers.
The expansion could provide Bangladesh’s textile sector with a more reliable domestic source of synthetic inputs at a time when manufacturers are seeking shorter lead times, greater supply-chain resilience and access to higher-value materials.
By combining additional production capacity with lower energy consumption, the project is intended to improve both the availability and efficiency of locally manufactured polyester raw materials.
