Beximco Textiles Limited, one of Bangladesh’s largest textile producers, is set to resume operations after a nearly year-long shutdown, following a landmark tripartite agreement involving Japanese investor Revival Project Limited, Janata Bank and the Beximco Group. The initiative, supported by government policy, aims to revive the factory complex, generate employment for approximately 25,000 workers and restore Bangladesh’s textile exports.
The plan centers around a US $ 20 million investment from Revival Japan, which will be used to facilitate garment production for global retailer Inditex. Revival Project Limited will arrange a back-to-back Letter of Credit (LC) from a foreign bank to purchase machinery and raw materials, with the factories expected to restart operations within 2-3 months. Once operational, the factories will produce garments under the new management team, including seasoned Japanese professionals, with Deloitte appointed as the auditing body.
The factories, comprising about 15 units previously owned by Salman F Rahman, a former adviser to the prime minister currently imprisoned, have remained inactive since February amid worker protests over unpaid wages. The government’s intervention aims to ensure a smooth reopening driven by economic priorities, not politics, according to Labour Secretary AHM Shafiquzzaman.
To facilitate this, Janata Bank will reschedule defaulted loans totaling approximately Taka 35,000 crore (US $ 3.5 billion), with Janata Bank alone holding Taka 23,000 crore. The Bangladesh Bank will relax export-related banking policies and extend credit facilities to Revival Project Limited, while the government has clarified it will not provide new loans but will offer policy and regulatory support.
The agreement stipulates that Revival Project will receive a service charge from factory earnings, with remaining profits directed towards repaying rescheduled debts. The government has emphasized the factories’ modern machinery and compliance standards, warning against past failures such as the collapse of Hallmark Group.
The Japanese investor, along with Ecomilli, plans to invest an initial US $ 20 million, with potential scaling up to US $ 100 million via the Buet Investment Network. The deal hinges on negotiations for new working capital, which Revival Japan has until August 15 to secure from banks. Once the LC is established, it is expected to take approximately 120 days for payments to be processed.
Janata Bank’s Managing Director Md Mazibur Rahman indicated that recommendations for loan restructuring would be presented after further discussions. A representative from Bangladesh Investment Development Authority (Bida) added that if Janata Bank declines to provide short-term financing, other banks may be approached.
Labour and finance officials emphasize that the factory reopening aligns with national economic interests, aiming to boost employment, exports and sustainable growth in Bangladesh’s textile sector.
