Leading denim manufacturer and exporter Envoy Textiles has finalized a deal with the Asian Development Bank (ADB) to borrow € 10.80 million for purchasing machinery for its second spinning unit.
The proceeds of the loan will be used to fund a second yarn spinning unit at Envoy’s manufacturing plant in Jamirdia.
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 readymade garment industry is a key driver of Bangladesh’s economy, accounting for over 80% of the country’s total export earnings, and Envoy is the leading denim fabric manufacturer. Modern spinning equipment will increase yarn production capacity, reducing reliance on imported yarn and enhancing the industry’s efficiency, sustainability, and energy efficiency,” said ADB vice president for private sector operations and public–private partnerships Ashok Lavasa.
This project marks 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.
“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.
Envoy has an annual denim fabric production capacity of 52 million yards — about 10% of the country’s total capacity.
It also has the world’s first platinum Leadership in Energy and Environmental Design (Leed) denim manufacturing facility certified by the United States Green Building Council.
The project will reduce electricity consumption and greenhouse gas emissions through the use of energy efficient and modern equipment.
Additionally, ADB will help Envoy to develop a gender action plan that will increase career opportunities for women employees, promote gender-inclusive procurement, and promote gender inclusion in the workplace.