Deshbandhu to build polyester fibre plant

Deshbandhu Group, a local conglomerate, has teamed up with American technology and engineering solution provider Chemtex to set up a polyester staple fibre plant.

Polyester staple fibre is a fibre produced from synthetic chemical compounds, which is strong enough to be twisted into yarn similar to natural fibres such as cotton or wool. In other words, it is a substitute for raw cotton.

The factory, which will be located in Sirajganj district, is expected to start production in 24 months, said Golam Mostafa, chairman of Deshbandhu Group.

The project cost will be $100 million and Chemtex will be a strategic partner, he said, while refusing to disclose the equity breakdown.

Once the factory is up and running, it will produce 400 tonnes of polyester staple fibre a day.  “The local market is our main target as the demand for such fibres is on the rise with the soaring garment exports.”

The factory will help in Bangladesh's efforts to hit $50 billion in garment exports by 2021 as it will reduce the lead-time for manufacturers, Mostafa said.

Bangladeshi garment makers need more than three lakh tonnes of polyester staple fibre a year, with the demand fully met through imports. At present, the country imports $480 million worth of polyester staple fibre a year.

Deshbandhu Group is targeting to supply 1.2 lakh tonnes of the fibre to garment factories a year initially, with production amped up later to facilitate the $50 billion export target, according to Mostafa.

The raw materials for the plant will be imported from Arabian countries, India, Indonesia and China.

Mostafa hopes more than 2,000 workers can be directly employed in the new plant and 6,000 more indirectly.

Chemtex and Deshbandhu Group yesterday signed an agreement regarding the plant at a ceremony held at the capital's Sonargaon Hotel. Industries Minister Amir Hossain Amu was also present at the signing ceremony.

Deshbandhu Group, which has presence in sugar refinery, shopping malls, garment and cement manufacturing, shipping and rice mills, has an annual turnover of $260 million. It employs 5,500.

“We will expand our business in different areas soon as Bangladesh is a good destination for investment,” Mostafa said.