Bangladesh’s industrial landscape continues to attract investment momentum as TK Group undertakes a new expansion in high-value polyester yarn manufacturing.

Modern Syntex Limited, a subsidiary of TK Group, is investing an additional $7.5 million to scale up its polyester yarn production capacity at the National Special Economic Zone (NSEZ) in Mirsharai, Chattogram. As part of the expansion, the company has secured a lease for 3.75 acres of additional land within the economic zone.

The investment agreement was formalized at the Bangladesh Economic Zones Authority (BEZA) office in Dhaka. The expansion is expected to strengthen Bangladesh’s backward linkage industries by enhancing domestic production of high-value synthetic yarn.

Polyester yarn plays a critical role in the textile and apparel sector, serving as a key raw material for products such as garments, sportswear, home textiles, and industrial fabrics. Currently, Bangladesh relies heavily on imports from countries including China, India, Indonesia, and South Korea to meet demand.

By expanding local production capacity, the initiative is set to reduce import dependency, save foreign exchange, and improve supply chain efficiency for the country’s export-oriented ready-made garment (RMG) sector.

The project also aligns with the growing global shift toward man-made fibres, which are increasingly used as alternatives to cotton due to their durability and versatility. Industry stakeholders view such investments as timely, supporting Bangladesh’s competitiveness in global textile markets.

In addition to enhancing production capacity, the expansion is expected to generate employment for around 120 people. The company has already demonstrated export potential, with its existing facility exporting approximately $30 million worth of products while also serving domestic demand.

Overall, the investment reflects rising confidence in Bangladesh’s economic zones and highlights the country’s strategic push to deepen industrial value chains, improve import substitution, and strengthen export competitiveness.

Source: The Business Standard