BD to set up jute viscose plant

Bangladesh will set up jute viscose plant with financial and technical assistance from China considering the huge export potential of the item, officials here said.
A high-powered Chinese delegation, led by Vice-Minister Wang Tiankai, will visit Bangladesh next week to this end.
The officials also informed a signing ceremony for the minutes of document (MoD) will take place in this regard tomorrow (Sunday, November 13) with a view to setting up the jute viscose plant.
Besides, they hoped, it will help strengthen mutual cooperation between the two friendly countries on the jute and textiles sector.
Earlier, a high-powered Bangladeshi delegation visited China from October 26 to November 3 last for discussion on Chinese cooperation in the field of jute and textiles sector development.
"We are going to sign the MoD with China following a fruitful discussion with the Chinese officials during our recent visit," a high official of the Ministry of Textiles and Jute (MoTJ) who visited China with the Bangladesh delegation told the FE.
Setting up a jute viscose plant involves a huge sum of money. At least Tk 10 billion is required for setting up a jute viscose plant, said the MoTJ sources.
Viscose - a kind of manmade natural fibre - which is being used in the country's spinning mills to produce yarn for making the finest possible fabrics for the readymade garment (RMG) sector.
Viscose which is made up of jute is deemed as more flexible and comfortable when compared to such other items.
Products made using jute viscose could bring in three to four times more profits than the products made using jute fibre.
Industry insiders said there is a huge demand for jute-made viscose in the country.
Bangladesh has to import viscose worth Tk 7-8 billion every year for its textiles and RMG sector.
Sources in the Bangladesh Jute Mills Corporation (BJMC) said there is a good opportunity for us to produce viscose as the jute-made item has a huge demand across the world.
BJMC Director (Joint Secretary) Babul Chandra Roy, who made the study report on the possibility of producing viscose from jute, shared his thoughts with the FE.
He said if Bangladesh can afford to have a jute viscose plant, then it will help save the country millions of taka spent annually for importing viscose.
Sector insiders said if Bangladesh can have the plant, it will enormously contribute to our national economy that will also help turn Bangladesh into a middle income country by the year 2021.
The Bangladesh delegation during their visit to China discussed various issues including the Chinese technical and financial assistance for the development of Bangladesh's jute sector.
They also visited plants of viscose and observed the manufacturing process of activated carbon/ charcoal in China.
The team members obtained practical knowledge on improving jute sector as it has, what they said, a huge prospect to boost the country's export.
China has been providing technical and financial supports to Bangladesh for revitalising the jute sector.
Earlier, the BJMC signed an agreement with a Chinese institution for modernising the country's jute mills.
Under the agreement, the BJMC will take technical assistance from the China Textile Industrial Corporation for Foreign Economic and Technical Corporation (CTEXIC) for modernisation of 24 state-owned jute mills for producing diversified jute goods.
Under a Chinese project titled 'Balancing, Modernisation, Rehabilitation and Expansion (BMRE) of Public Sector Mills,' three jute mills will primarily be upgraded costing approximately USD 340 million under Chinese assistance.
The BJMC currently has 26 mills, which are 60 to 70 years old and of which 24 mills, which are now in operation, are annually producing 2,08,642 metric ton jute goods against their original annual production capacity of 3,45,000 metric ton, the sources informed.
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