ADB to Provide $50 Million Loan to Strengthen Bangladesh's Textile Backward Linkage Industry

The Asian Development Bank (ADB) is providing a $50 million loan to Modern Syntex Limited, a subsidiary of leading Bangladeshi conglomerate T.K. Group, to strengthen the country's textile backward linkage industry and reduce the garment sector's dependence on imported raw materials.

The ADB's Dhaka office announced the financing on Tuesday.

Under the loan agreement signed between ADB and Modern Syntex Limited (MSL), the company will expand its polyester chip production capacity from 107 metric tons per day to 407 metric tons per day. The financing will also be used to refinance short-term working capital loans obtained from local sources.

The expanded manufacturing facility will produce high-quality polyester chips used in the production of premium textiles and ready-made garments, helping to meet growing domestic demand for synthetic raw materials.

ADB Country Director for Bangladesh, Zhengfen Jiang, said the textile and ready-made garment (RMG) industry remains one of the country's key economic drivers but continues to rely heavily on imported synthetic raw materials.

"ADB's long-term financing will help Modern Syntex increase efficient domestic production, strengthen local supply chains, and support the manufacturing of higher-value textile products," Jiang said.

She added that the project would also contribute to the development of the Mirsarai Economic Zone by attracting investment, creating jobs, and enhancing Bangladesh's overall economic competitiveness.

The project includes the installation of energy-efficient machinery, which is expected to save approximately 4,840 megawatt-hours of electricity annually. It is also projected to reduce greenhouse gas emissions by around 2,222 tonnes of carbon dioxide equivalent (CO₂e) each year.

In addition, the investment will support the company's efforts to obtain Leadership in Energy and Environmental Design (LEED) Platinum certification for its buildings and manufacturing facilities.

By expanding domestic production of polyester chips, the project is expected to reduce Bangladesh's dependence on imports while strengthening the competitiveness of local textile manufacturers.

The expansion is also expected to create around 100 new jobs, with particular emphasis on increasing employment opportunities for women.

Modern Syntex Managing Director Abu Sufian Chowdhury said ADB's financing would play a vital role in significantly expanding polyester chip production, strengthening the domestic supply chain, and reducing reliance on imported raw materials.

He added that investments in advanced energy-efficient technologies would enhance the company's competitiveness while contributing to the development of a more sustainable textile industry.

"The project is expected to create long-term value for our customers, the manufacturing sector, and the broader economy," Chowdhury said.