FAR Chemical Industries entered the Spinning Industry with an Investment of Tk300cr

Desk Report: Far Chemical Industries entered the spinning industry by starting production on a trial basis Monday, according to a company disclosure, as the stock market-listed firm aims at tapping deemed export potentials.

The business diversification costs Far Chemical Tk300 crore in the spinning investment, according to the company disclosure on the Dhaka Stock Exchange (DSE) website.

The firm has arranged the investment with bank loans and from its own sources. The company’s daily spinning capacity is 18 tonnes, but the rolling blackouts now cripple 30% of the production, according to the official data.

Far Chemical initially set up 33,600 spindles in the production line in Narayanganj’s Rupganj, as the new spinning machines have been imported from Germany, Italy, Japan, and Switzerland.

The annual revenue of the spinning unit will be around Tk230 crore, while 15% net profit will be generated from the total revenue said the management of the firm.

Far Chemical – a concern of Far Group – manufactures and exports chemical products to different export-oriented textiles, dyeing, and apparel industries.

According to the company, their chemical factory in Cumilla is now under construction. If the plummeting chemical market takes a further nosedive, the spinning set-up will replace the chemical production lines in Cumilla Export Processing Zones.