Beximco Textiles to Restart Operations with Support from Japanese Firm and Janata Bank

After a long closure, Beximco Textiles Limited is set to resume production. This initiative has been undertaken through a tripartite lease agreement coordinated by the Ministry of Labour among the Japanese firm Revival Project Limited, Janata Bank, and Beximco Group. With government policy support, this project is expected to create employment opportunities for around 25,000 workers.

According to the agreement, Revival Project will arrange a back-to-back Letter of Credit worth 20 million USD from a foreign bank, which will be used as capital to fulfill purchase orders from the global brand Inditex. A portion of the profit earned from production will be paid to Revival as a service charge, while the remainder will be used to repay non-performing loans.

Janata Bank and other lending institutions will reschedule non-performing loans amounting to approximately 350 billion taka, of which Janata Bank's share is about 230 billion taka. However, the government will not provide any new loans but will ensure policy and banking support.

Labour Secretary AHM Safiquzzaman stated that the decision to restart the factory was taken to preserve investment, employment, and export earnings. Beximco’s Managing Director Osman Kaiser Chowdhury expressed hope that if the agreement is signed by mid-August, production will normalize within the next year.

Revival Project plans to appoint international auditors to ensure transparency and has adopted a 2-3 year long-term plan to restore confidence among foreign investors.