A compact cotton yarn manufacturing company will be set up on 40 bighas of land in Habiganj, Bangladesh in the next one and a half years. The new venture, Far East Spinning Industries, will be the first company that will completely manufacture compact yarn. It will have 25,000 spindles with a production capacity of 14 tonnes of high quality yarn per day.

Compact yarn is a value-added product that reduces dyeing, finishing and processing costs for manufacturing finished readymade garments. Time and use of water for dyeing of compact yarn will also be much lower, which, in turn, will reduce production costs. Value addition in the finished product will also be higher.

Construction work will start in January, while the state-of-the-art machinery from Germany will come in November 2015. Commercial production is expected to start in June 2016. The products will be sold in both domestic and foreign markets. A green project it will use solar energy and rain water.

Right now there are many yarn manufacturers in Bangladesh but they produce compact yarn on a limited scale. They utilise around 10 per cent of their capacity for manufacturing compact yarn.