A 50 million dollar loan agreement has been signed with Modern Syntex Limited to support the expansion of energy efficient polyester chips manufacturing in Bangladesh.

Under the project, the company plans to raise its polyester chips production capacity from 107 tonnes to 407 tonnes per day. The financing will also be used to refinance short term local working capital loans.

The expanded facility at the Mirsarai Economic Zone in Chattogram will manufacture high intrinsic viscosity polyester chips, which are used in higher value textile and apparel products.

The expansion is expected to strengthen Bangladesh’s textile value chain by increasing local polyester chips production and reducing reliance on imported synthetic materials. It could also reduce supply chain waiting times and improve operational efficiency for textile manufacturers.

The project will introduce energy efficient machinery that is expected to save around 4,840 megawatt hours of electricity and reduce annual carbon dioxide equivalent emissions by approximately 2,222 tonnes.

The expansion is also expected to generate new employment opportunities, with inclusive recruitment measures planned to encourage greater participation of women.