DBL Group started running a new spinning mill named Jinnat Textile Mills Ltd from Thursday with a daily production capacity of 42 tonnes of yarn, all out of cotton and manmade fibres (MMF) and for use by its own garment factories.

The textile and garment exporter invested $80 million to establish the factory on 15 acres of land inside the 170-acre DBL Industrial Park, also known as Shreehatta Economic Zone, in Moulvibazar.

"Our group will use all the yarn to make fabrics and finally make garment items for export," said MA Rahim Feroz, vice-chairman of DBL Group, over the phone.

Although the group already has three spinning mills, it currently has to source 42 tonnes of yarn a day from other mills to make garments.

The group wants to export quality garments timely and for this reason it made the investment, which may increase its export earnings by 5 percent a year.

The group's total export earnings from garment shipments last year amounted to $450 million.

The mill has started running partially and will run at full capacity from the third week of December.

In future, more industrial units will be established in the industrial park, Feroz said. He could not exactly state how much money was invested for establishing the economic zone.

Sarah Cooke, British high commissioner to Bangladesh, inaugurated the facility, according to a statement.

British International Investment (BII), the UK government's development finance institution, provided a loan of $52 million to establish the factory.

"The factory will create more jobs, reduce poverty and increase business opportunities while improving working conditions for women and boosting environmental sustainability," said Cooke.

The mill will play a significant role in Bangladesh's economic growth, said Shaikh Yusuf Harun, executive chairman (senior secretary) of the Bangladesh Economic Zones Authority.

"Not only does it promote green building practices, it is also creating 1,000 low-skilled jobs with more than half of them for women," said Mohammad Rehan Rashid, country director for Bangladesh at the BII.

Abdul Wahed, chairman of DBL Group, MA Jabbar, managing director, MA Rahim, vice-chairman, MA Quader, deputy managing director and group CEO, and Richard Palmer, director and head of private debt at the BII, were also present.