First-ever polyester chips plant to be set up in N'ganj
Saturday, 28 March 2009
Jasim Uddin Haroon
A local spinner will set up the country's first ever petrochemical plant to produce polyester chips by investing Tk 5.5 billion mainly to give a fresh boost to the apparel sector, the yarn manufacturer said Wednesday.
Polyester chips, which are intermediate goods, are utilised for manufacturing synthetic fibre, fabrics and pet bottle.
Malek Spinning Mills Limited, a leading spinner, has taken the move to install the plant on 100 acres of land at Roopganj in Narayanganj.
Currently, local synthetic yarn producers and different beverage companies need around 400 tonnes of polyester chips a day, which are totally imported from abroad.
A Matin Chowdhury, managing director of Malek Spinning Mills Limited, told the FE Wednesday the construction work for the factory would start this year.
"We have selected Narayanganj for setting up the plant and it will produce at least 300 tonnes of polyester chips a day. There is a plan to enhance its capacity to 600 tonnes," Matin added.
The demand for polyester chips is rising, on an average, by 10 per cent annually.
The company will use MEA and PTA, two raw materials required to produce petrochemical products, which will be imported from Middle East countries and Singapore.
Apparel sector sources said Bangladesh's textile factories produce cotton yarns while the demand for non-cotton yarn is growing.
"We produce only cotton yarn, but the non-cotton fabrics account for a large share of the world clothing market," said Abdul Hai Sarkar, president of Bangladesh Textile Mills Association (BTMA).
He also said this will give a big boost to the country's textile and apparel export.
However, the company is planning to raise fund worth Tk 1.75 billion from the capital market.
The petrochemical plant will raise Tk 500 million through IPO with the face value of Tk 10 a share and Tk 1.25 billion through pre-IPO placement.
"We'll raise the Tk 500 million from the capital market and we expect the IPO (initial public offering) will be made sometime in July next," Matin added.
The valuation for the pre-IPO placement has already completed and the pre-IPO placement value of a share has been set at Tk 25 against the face value of Tk 10 each.
"The pre-IPO placement will start on April 1," said A Matin Chowdhury, who was president of Bangladesh Textile Mills Association (BTMA).
Malek Spinning mills, established in 1999 at Shafipur in Gazipur, had a turnover of Tk 2.32 billion in 2007-08.
A local spinner will set up the country's first ever petrochemical plant to produce polyester chips by investing Tk 5.5 billion mainly to give a fresh boost to the apparel sector, the yarn manufacturer said Wednesday.
Polyester chips, which are intermediate goods, are utilised for manufacturing synthetic fibre, fabrics and pet bottle.
Malek Spinning Mills Limited, a leading spinner, has taken the move to install the plant on 100 acres of land at Roopganj in Narayanganj.
Currently, local synthetic yarn producers and different beverage companies need around 400 tonnes of polyester chips a day, which are totally imported from abroad.
A Matin Chowdhury, managing director of Malek Spinning Mills Limited, told the FE Wednesday the construction work for the factory would start this year.
"We have selected Narayanganj for setting up the plant and it will produce at least 300 tonnes of polyester chips a day. There is a plan to enhance its capacity to 600 tonnes," Matin added.
The demand for polyester chips is rising, on an average, by 10 per cent annually.
The company will use MEA and PTA, two raw materials required to produce petrochemical products, which will be imported from Middle East countries and Singapore.
Apparel sector sources said Bangladesh's textile factories produce cotton yarns while the demand for non-cotton yarn is growing.
"We produce only cotton yarn, but the non-cotton fabrics account for a large share of the world clothing market," said Abdul Hai Sarkar, president of Bangladesh Textile Mills Association (BTMA).
He also said this will give a big boost to the country's textile and apparel export.
However, the company is planning to raise fund worth Tk 1.75 billion from the capital market.
The petrochemical plant will raise Tk 500 million through IPO with the face value of Tk 10 a share and Tk 1.25 billion through pre-IPO placement.
"We'll raise the Tk 500 million from the capital market and we expect the IPO (initial public offering) will be made sometime in July next," Matin added.
The valuation for the pre-IPO placement has already completed and the pre-IPO placement value of a share has been set at Tk 25 against the face value of Tk 10 each.
"The pre-IPO placement will start on April 1," said A Matin Chowdhury, who was president of Bangladesh Textile Mills Association (BTMA).
Malek Spinning mills, established in 1999 at Shafipur in Gazipur, had a turnover of Tk 2.32 billion in 2007-08.