STAR BUSINESS REPORT

Asian Development Bank (ADB) has provided a €10.8 million ($11.2 million) loan to Envoy Textiles to construct a second yarn spinning unit in Jamirdia of Mymensingh.

The fund will also finance the purchase and installation of energy efficient spinning machinery and other equipment to expand sustainable textile production and create local jobs, said a statement from the ADB yesterday.

The new automated and more energy efficient unit will have an annual yarn production capacity of 3,600 tonnes mainly used for in-house production of denim fabrics.

Construction and operation of the new spinning unit is expected to create 250 new jobs, the statement also said.

“The ready-made garment industry is a key driver of Bangladesh’s economy, accounting for over 80 per cent of the country’s total export earnings, and Envoy is the leading denim fabric manufacturer,” said ADB Vice-President for Private Sector Operations and Public–Private Partnerships Ashok Lavasa.

“Modern spinning equipment will increase yarn production capacity, reducing reliance on imported yarn and enhancing the industry’s efficiency, sustainability, and energy efficiency,” he also said.

“This project marks the ADB’s return to financing Bangladesh’s textile sector after two decades, and it will help to crowd in much-needed financing to this strategically crucial part of the economy,” he added.

The project will reduce electricity consumption and greenhouse gas emissions through the use of energy efficient and modern equipment.

Additionally, the ADB will help Envoy develop a gender action plan that will increase career opportunities for women employees, promote gender-inclusive procurement and promote gender inclusion in the workplace, the statement said.

“We are delighted to receive our first-ever financing from an international lender, and it is even more meaningful that it comes from ADB as we share the same vision of quality of service, inclusivity, and sustainability,” said Envoy Founder Kutubuddin Ahmed.

“Partnering with an internationally reputable financial institution such as the ADB is an affirmation of Envoy’s direction and an important step in our sustainable growth,” Ahmed said.