Deshbandhu Group is a leading corporate house in Bangladesh has teamed up Chemtex Inc. a USA based technology and engineering solution provider for polyester staple fibre plant, first of its kind in Bangladesh. The contract signing ceremony between Deshbandhu Group and Chemtex was held yesterday at the capital's Sonargaon Hotel. Industries Minister Amir Hossain Amu was also present at the signing ceremony.

Polyester staple fibre is a fibre produced from synthetic chemical compounds, which is strong enough to be twisted into yarn similar to natural fibres such as cotton or wool. In other words, it is a substitute for raw cotton.

Golam Mostafa, chairman of Deshbandhu Group said that the factory, which will be located in Sirajganj district, is expected to start production in 24 months. The investment involve in this project will be to the tune of $100 million. Chemtex will be a strategic partner .

Once the factory is up and running, it will produce 400 tonnes of polyester staple fibre a day. The local market is their main target as the demand for such fibres is on the rise with the soaring garment exports.

Bangladeshi garment makers need more than three lakh tonnes of polyester staple fibre a year, with the demand fully met through imports. At present, the country imports $480 million worth of polyester staple fibre a year.

Deshbandhu Group is targeting to supply 1.2 lakh tonnes of the fibre to garment factories a year initially, with production amped up later to facilitate the $50 billion export target, according to Mostafa.

The raw materials for the plant will be imported from Arabian countries, India, Indonesia and China.

Mostafa hopes more than 2,000 workers can be directly employed in the new plant and 6,000 more indirectly.

Deshbandhu Group, which has presence in sugar refinery, shopping malls, garment and cement manufacturing, shipping and rice mills, has an annual turnover of $260 million. It employs 5,500.

Mostafa said that they will expand their business in different areas soon as Bangladesh is a good destination for investment.

The upcoming polyester staple fibre plant will help in Bangladesh's efforts to hit $50 billion in garment exports by 2021 as it will reduce the lead-time for manufacturers.