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Bangladesh expands denim capacity

An increase in the global market share of Bangladeshi denim products is prompting fabric millers to expand their businesses to meet the growing demand. They are taking steps to increase production capacity. As China is gradually moving away from producing low-end products, Bangladeshi producers are receiving a huge number of orders for denim products.

Production of denim in Bangladesh was initially dependent on the import of fabrics. However, 60 per cent of the fabrics are now sourced locally. There are 32 denim mills in Bangladesh with a total annual production capacity of about 443 million meters. Bangladesh’s exports of denim products to the EU in the first six months of this year rose by 5.7 per cent compared to the corresponding period in 2016.

Between January and July this year, the country’s earnings from the US showed a 6.6 per cent increase on the same period last year. The Bangladeshi denim market is very competitive. Sourcing of quality fabrics produced by local millers helps denim manufacturers meet their lead times. The quality of denim fabrics is defined by washing effects so these are an important factor in producing high-end products and determining their quality.