The Asian Development Bank (ADB) has recently entered a €10.8 million ($11.2 million) facility agreement with Envoy Textiles Limited to support and finance the purchase and installation of energy efficient spinning machinery and other equipment to expand sustainable textile production and create local jobs.
The proceeds of the loan will be used to fund a second yarn spinning unit at Envoy’s manufacturing plant in Jamirdia, Bangladesh.
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 ready-made garment industry is a key driver of Bangladesh’s economy, accounting for over 80 percent 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 2 decades, and it will help to crowd in much-needed financing to this strategically crucial part of the economy."
