Cut acrylic yarn import

Bangladesh can cut much of its import dependence on a sweater-making raw material, acrylic yarn, by making it locally, spinners said yesterday.

“Bangladesh requires about 40 crore pounds of yarn a year. But spinners can supply about 17 percent of the yearly requirement. The rest is imported,” said Tariq Ahmed, director for operations and marketing of TK Group.

Chin Hung Fibre Ltd, a subsidiary of TK Group, makes acrylic yarn.

“It indicates huge potential. We can reduce our dependence on import by making our own yarn. We have scope to produce value-adding acrylic yarn,” he said.

Tariq's remark came on the sidelines of a seminar on value-chain development of acrylic yarn in Bangladesh, co-organised by Chin Hung Fibre and Thai Acrylic Fibre Co of Aditya Birla Group at Radisson Water Garden Hotel in Dhaka.

Referring to more than $1.0 billion earnings from sweater exports, Tariq said he hoped the exports would double in the next couple of years, as Bangladeshi makers would enjoy an edge in pricing over competing countries such as China.

“Although sweater exports now face a slowdown, we hope the next winter will be a good season for us,” he said.

According to the TK Group director, acrylic yarn is now imported from countries such as China, Indonesia, Korea, Thailand and Spain.

“But we will have more benefit, if we import raw materials and make yarn. Buying yarn from the domestic market will be helpful for sweater makers to meet the lead time easily,” said Tariq.

About 10 acrylic yarn spinners operate in Bangladesh and are trying to meet a part of acrylic-yarn demand by export-oriented sweater factories, Tariq said.

Tariq also said TK Group has a plan to increase production of acrylic yarn with focus to make value-added ones. "We are planning to make special yarn,” he said.

Local companies can meet 5-7 percent of demand for special yarn now. The rest is met by import.

Shammy Mathew, deputy general manager for marketing of Thai Acrylic Fibre Co Ltd, observed that many local sweater makers still depend on import, as there is a "knowledge gap" in the value chain.

“You can make here all yarn you need. You don't need to import,” he said.