The Asian Development Bank has signed a $50 million loan with Modern Syntex Limited to expand energy-efficient polyester chip production in Bangladesh, ADB said on Tuesday.

The financing will back MSL’s plan to raise polyester chip capacity from 107 tonnes to 407 tonnes a day and refinance short-term local working capital loans. The expanded facility will produce high intrinsic viscosity polyester chips used in higher-value textile and apparel products.

“Bangladesh’s textile and ready-made garment industry is a key driver of the economy, but it continues to rely heavily on imported synthetic inputs,” said ADB Country Director for Bangladesh Qingfeng Zhang.

He said the long-term financing would help MSL expand efficient domestic production, deepen backward linkages, strengthen supply chains and support higher-value textile manufacturing, while contributing to the development of the Mirsarai Economic Zone and efforts to attract investment, create jobs and sharpen economic competitiveness.

The project will introduce energy-efficient machinery expected to save about 4,840 megawatt-hours of electricity and cut about 2,222 tonnes of carbon dioxide equivalent emissions a year. It will also help MSL pursue Leadership in Energy and Environmental Design (LEED) Platinum certification for its building and factory.

The project is expected to strengthen Bangladesh’s textile value chain by raising domestic supply of polyester chips, reducing reliance on imports, shortening lead times and improving efficiency for textile manufacturers.

It will also create about 100 new jobs and promote greater participation of women through inclusive recruitment practices.

“We greatly value ADB’s support as it enables MSL to significantly expand polyester chips production, strengthen local supply chains, and reduce dependence on imported inputs,” said MSL Managing Director Abu Sufian Chowdhury.

He added that investment in advanced energy-efficient technology was improving the company’s competitiveness while supporting a more sustainable textile industry. “We believe this project will create long-term value for our customers, the manufacturing sector, and the broader economy.”

MSL, part of the TK Group, operates Bangladesh’s first continuous polymerisation facility, located in the Mirsarai Economic Zone in Chattogram, close to major port and logistics infrastructure. The company manufactures polyester chips, synthetic yarn and fibre, primarily for domestic textile manufacturers.