To boost local production and marketing of textile chemicals that Bangladesh currently imports ten multinational companies have committed to invest around Tk2000 crore in Bangladesh.
In this regard, Bangladesh Investment Development Authority (Bida) and the Bangladesh Economic Zones Authority (Beza) have reportedly allocated land to four MNCs in various economic zones. Another half dozen has also submitted their investment proposal to Bida.
Industry circles estimate that the current textile chemical market size in Bangladesh is Tk1000 crore. The local manufacturers fulfill only 20 percent of this demand. If the investment materializes the MNCs would be producing textile chemicals for the first time in Bangladesh. Industry players hope that local manufacturing would lower the cost of this input.
The four companies are Germany-based firm RUDOLF GmbH, the largest supplier to the textile chemical market in Bangladesh, CHT Group, Japan’s NICCA Chemical Ltd, and Huntsman (Singapore) Pte Ltd.
The companies will produce chemicals for all textile processes and sectors including yarn production and from cotton and finishing, dyeing, and cleaning. The chemicals that improve the quality of fabrics produced from yarn would also be manufactured. The scores of chemicals include detergents, PVA gum, alginate gum, optical brighteners, enzymes, acetic acid, wetting agents, softeners, well marks, sodium acetate, hydro’s, bio-scouring chemicals, entry foaming agents, peroxides, stabilizers.
Industry players are elated by this development and have expressed confidence that it will have a positive impact also on the entire readymade garments industry as the use of various chemicals for the production of yarn and cotton is indispensable. They say that local production of chemicals would save time spent on imports and the inventory cost would also be lower. The value-added tax on locally produced chemicals would also be lower because of lower manufacturing costs. Experts opine local chemical production will benefit traders and textile millers.
Meanwhile, Bangladesh Commerce Minister Tipu Munshi said the government is working to attract multinational and foreign companies to invest in Bangladesh. Some MNCs have declared the amount they intend to invest. RUDOLF GmbH is going to invest about Tk350 crore. The company has already been allotted five acres of land in Bangladesh Special Economic Zone (BSEZ.)
According to Bida sources, Japan-based NICCA Chemical Ltd has been allotted three acres of land at Bangladesh Special Economic Zone in Araihazar. The company is going to make an initial investment of around Tk200 crore. Germany-based CHT Group has been allotted around four acres of land in Meghna Economic Zone. The company will also invest around Tk200 crore initially.
Meanwhile, Huntsman (Singapore) Pte Limited has been allotted three acres of land in Abdul Monem Economic Zone, Munshiganj, and is set to invest about Tk200 crore initially.
Another six companies – Swisscolor (Switzerland), Merk (Germany), Archroma (Switzerland), Kyung-In Synthetic Corporation (Korea), Novozymes (Denmark), and Global Chemicals Co Ltd (China) – have submitted investment proposals to the tune of some Tk1,050 crore to Bida, sources said.
