Modern Syntex has stepped up with a big investment in manufacturing polyester and synthetic yarns to fit the bill for global consumers switching from cotton to manmade fabrics. This factory is being set up in Bangabandhu Shilpa Nagar and has far 90% of the work is done.
The company has invested $131 million to set up a synthetic yarn factory. This factory aims to produce four types of products, such as polyester draw textured yarn (DTY), polyester fully drawn yarn (FDY), polyester staple fibre (PSF), and polyethene terephthalate (PET) chips.
This factory will provide big support to local readymade garments producing garments products from synthetic yarns. Currently, Bangladesh is entirely dependent on imports of such raw materials from China, Indonesia, Korea, and India.
The company official claims that the factory will go into production in March-April 2023. They are hoping this factory will meet 60-70% of local demand. Experts in apparel manufacturers say that Bangladesh has opportunities to enhance its stake in non-cotton apparel items in the global market. The daily production target for this factory would be 460 tonnes. It is looking to employ 1500 people with an annual turnover of about $200 million.
Locally made synthetic yarn will be instrumental in reducing costs and thus provide an opportunity for local garments manufacturers to expand into the global synthetic clothing market.
According to Shamsul Azam, director at Bangladesh Knitwear Manufacturers and Exporters Association local demand for synthetic yarn is 200k tonnes per year. More investment into synthetic fibre is also helpful for Bangladesh to avail of GSP+ facilities. The global apparel market is divided into 75% manmade apparel to 25% cotton made apparel. In contrast, Bangladesh's apparel export is 70% cotton made clothes.