The Asian Development Bank (ADB) has agreed to finance the second state of art yarn-spinning unit of Envoy by signing a loan agreement worth $11.2 million loan agreement.
The new unit is energy efficient and needs about 1/3 workforce engaged by spinning mills with older technology. The new plant would be commissioned in Mymensingh’s Bhaluka where the first plant of Envoy is also operating.
The loan provided by the ADB will finance the purchase and installation of machinery and other equipment to promote sustainable textile production. The new plant would employ 250 workers. The new automated will have an annual yarn production capacity of 3,600 tonnes mainly used. It will be energy efficient. The yarn produced would be used for the in-house production of denim fabrics.
The vice president of private sector partnership ADB Ashok Lavasa said the ready-made garment industry is the main strength of exports from Bangladesh, accounting for 80 percent of its total exports. Envoy is the leading denim exporter in the country. New state of art spinning equipment will add to Envoy’s yarn production capacity and reduce its dependence on imported yarn, he added
He also said that with this loan ADB has returned after two decades to finance the textile sector of Bangladesh. The project will reduce electricity consumption and greenhouse gas emissions through the use of energy-efficient and modern equipment.
Envoy has an annual denim fabric production capacity of 52 million yards, about 10 percent of the country’s total capacity. Envoy 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.
