Xingchen Textile Co Ltd, a Chinese company, signed a deal with Bangladesh Export Processing Zones Authority (Bepza) yesterday to invest $35.03 million in setting up a textile recycling factory in Mongla Export Processing Zone (EPZ).

The company aims to produce 20,000 tonnes of yarn and 12,000 tonnes of woven fabrics annually by recycling scrap fabric of garment factories, locally known as "jhut", and employing 600 Bangladeshis, said a press release.

Md Ashraful Kabir, member (investment promotion) of Bepza and Chen Dehong, chairman of the Xingchen, signed the agreement at Bepza Complex in Dhaka in presence of Maj Gen Abul Kalam Mohammad Ziaur Rahman, executive chairman of Bepza.

The Xingchen is the second Chinese investor wishing to establish a textile recycling factory at Mongla EPZ.