Bangladesh based, Far East Industries Ltd will set up the country’s first compact yarn manufacturing facility.
“The plant to be set up in Habiganj will be operational in 18 months at an approximate investment of Tk 150 crore,” according to a Daily Star report.
It will have 25,000 spindles with a production capacity of 14 tons of high quality yarn per day, Asif Moyeen, chairman of Far East Spinning said.
“Compact yarn is a value-added product that reduces dyeing, finishing and processing costs for manufacturing finished readymade garments,” he explained.
“Time and use of water for dyeing of compact yarn is also much lower, which too reduces production costs,” he said.
The construction work of the plant will start in January, while the state-of-the-art machinery from Germany will come in November next year.
Moyeen expects commercial production to start in June 2016 and the products will be sold in both the domestic and foreign markets.
He added by saying that there are many Bangladeshi yarn spinners who produce compact yarn but utilise just around 10 percent on average of their capacity for manufacturing compact yarn.
The factory will be built under green building concept, as solar energy and rain water will be used in the plant
IDLC Finance and The City Bank are financing the Far East Spinning compact yarn plant through a syndicated loan of around Tk 100 crore.
