Bangladesh's Envoy Textiles invests Tk 2.76 billion to expand spinning capacity

en.Wedoany.com Reported - On September 28, Bangladesh's Envoy Textiles disclosed that it is advancing two spinning expansion projects with a total investment exceeding Tk 2.76 billion, adding ring spinning and rotor spinning capacity respectively. Once all projects are completed, the company's comprehensive spinning capacity will increase from the current 85 tons/day to 125 tons/day, a net increase of 40 tons/day, or nearly 47%. The ring spinning project is scheduled to commence commercial production around December 2026, with the remaining expansion works planned for completion by March 2027.

This round of expansion is divided into two parts: ring spinning adding 15 tons/day of capacity, and rotor spinning adding 25 tons/day of capacity. Envoy Textiles' board of directors approved in April this year the increase of existing rotor spinning capacity from 25 tons/day to 50 tons/day, and the company's official website investor information also records this capacity expansion resolution dated April 26. Under the current implementation schedule, the ring spinning project will commence production first, followed by the completion of rotor spinning and other supporting works.

The new spinning capacity will feed directly into Envoy's existing denim production system. The company currently operates an integrated spinning, weaving, and denim fabric facility in Jamirdia, Mymensingh, Bangladesh, with existing denim capacity of approximately 4.5 million yards per month. After the expansion is completed, the additional yarn will be primarily used for the company's internal denim production, further increasing the proportion of self-supplied yarn.

The project financing structure also includes a US$30 million sustainability-linked loan provided by the Asian Development Bank. The loan was signed in 2025, with part of the funds used for a new automated, energy-efficient spinning unit at the Jamirdia plant. According to ADB disclosures, the spinning unit supported by this financing is designed to produce 4,550 tons of yarn annually, while also supporting the installation of 3.5 MWp of rooftop solar at the plant and the replacement of some short-term local working capital loans. Installation of related machinery and equipment is still underway, and the ADB project documents give a target commercial operation date of January 2027.

Envoy Textiles has also purchased 50.37 decimal of land adjacent to its existing Bhaluka plant for future expansion. According to the company's currently disclosed project timeline, the near-term milestones are first the ring spinning project commencing production around December 2026, followed by the completion of the additional rotor spinning capacity and other related works, raising comprehensive spinning capacity to 125 tons/day by March 2027.