The Board of Directors of listed Envoy Textiles Limited has approved the setting up of Spinning Project Expansion Unit to further increase yarn production. The annual production capacity of the company will increase to 4,550 tons. It will cost about 100 crore Taka.

The company said that spinning project expansion unit will be set up to produce cotton, polyester, spandex core, spun yarn. It will cost a total of 97 lakh 30 thousand Taka. 30 percent of which will be financed by the company’s earnings equity and the remaining 70 percent by borrowing from banks. Envoy Textile expects to complete the project by December 2025.

The company also said that European and Japanese machinery will be used to set up the new unit. which will have state-of-the-art ring spinning manufacturing facilities. About 60 percent of the yarn produced will be used for own denim production and the remaining 40 percent for deemed export.

The company expects the project to achieve a payback period of four and a half years.

The company disclosed this information through the Dhaka Stock Exchange (DSE).