The Asian Development Bank (ADB) has agreed to provide a $50 million loan to Modern Syntex Limited (MSL), part of the TK Group, to support the expansion of its polyester chips manufacturing facility in Bangladesh. The financing aims to increase MSL’s production capacity from 107 tonnes to 407 tonnes per day, while also refinancing existing short-term local working capital loans.

The upgraded facility, located in the Mirsarai Economic Zone near Chattogram, will produce high-intrinsic viscosity polyester chips essential for higher-value textile and apparel products. The project incorporates energy-efficient technologies expected to reduce electricity consumption by approximately 4,840 megawatt-hours and lower carbon dioxide equivalent emissions by around 2,222 tonnes annually.

ADB Country Director for Bangladesh Qingfeng Zhang highlighted the importance of the initiative, noting that although Bangladesh’s textile and ready-made garment industry is a major economic driver, it remains heavily dependent on imported synthetic inputs. He said the loan would support the growth of efficient domestic production, enhance supply chains, foster backward linkages, and promote higher-value manufacturing. The project is also anticipated to contribute to the development of the Mirsarai Economic Zone, attract additional investment, generate employment opportunities, and strengthen Bangladesh’s economic competitiveness.

MSL's Managing Director Abu Sufian Chowdhury expressed appreciation for ADB’s support, emphasizing that the funding would enable the company to expand polyester chips production, reduce reliance on imports, and bolster local supply chains. He added that investing in advanced, energy-efficient machinery would improve the company’s competitive position while promoting sustainability in the textile sector. MSL also aims to pursue Leadership in Energy and Environmental Design (LEED) Platinum certification for its building and factory through this project.

The expansion is expected to create around 100 new jobs with a focus on inclusive recruitment practices that encourage greater participation of women. MSL, which operates Bangladesh’s first continuous polymerisation facility, primarily supplies polyester chips, synthetic yarn, and fiber to domestic textile manufacturers.

Established in 1966, ADB is a regional development bank owned by 69 members, including 50 from Asia and the Pacific. The bank supports sustainable, inclusive, and resilient growth by leveraging financial tools and partnerships to address complex development challenges across the region.