The Asian Development Bank (ADB) entered into a €10.8 million ($11.2 million) agreement with Envoy Textiles Limited to support and finance the purchase and installation of energy-efficient spinning machinery and other equipment.
A press release published on Sunday revealed that the proceeds of the loan will be used to fund a second yarn spinning unit at Envoy’s manufacturing plant in Jamirdia, Bangladesh.
The new automated and the more energy-efficient unit will have an annual yarn production capacity of 3,600 tonnes, mainly used for in-house production of denim fabrics. Construction and operation of the new spinning unit are expected to create 250 new jobs.
Regarding the agreement, ADB Vice-President for Private Sector Operations and Public–Private Partnerships Ashok Lavasa said, “The ready-made garment industry is a key driver of Bangladesh’s economy, accounting for over 80 per cent of the country’s total export earnings.”
Mentioning that Envoy is the leading denim fabric manufacturer, he added, “This project marks ADB’s return to financing Bangladesh’s textile sector after 2 decades, and it will help to crowd in much-needed financing to this strategically crucial part of the economy.
“Modern spinning equipment will increase yarn production capacity, reducing reliance on imported yarn and enhancing the industry’s efficiency, sustainability, and energy efficiency.”
The project will reduce electricity consumption and greenhouse gas emissions through the use of energy-efficient and modern equipment, the release added.
Additionally, ADB will help Envoy to develop a gender action plan that will increase career opportunities for women employees, promote gender-inclusive procurement, and promote gender inclusion in the workplace.
“We are delighted to receive our first-ever financing from an international lender, and it is even more meaningful that it comes from ADB as we share the same vision of quality of service, inclusivity, and sustainability,” said Envoy Founder Kutubuddin Ahmed.
“Partnering with an internationally reputable financial institution such as ADB is an affirmation of Envoy’s direction and an important step in our sustainable growth,” he added.
Envoy has an annual denim fabric production capacity of 52 million yards—about 10 per cent of the country’s total capacity, the release read.
It has the world’s first platinum Leadership in Energy and Environmental Design (LEED) denim manufacturing facility certified by the United States Green Building Council.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
