Jiangsu Sanfangxiang Group (SFX Group), a Chinese conglomerate, is keen to invest $200 million in Bangladesh to set up a petrochemical and chemical fibre production park in a joint venture with Deshbandhu Group.

The parties are holding talks with the Bangladesh Economic Zones Authority seeking to get more than 100 acres of land at the Mirsarai economic zone in Chattogram for the complex.

“Deshbandhu Group will only bear the costs associated with the land and SFX Group will bring technologies and the remaining investment for the project,” said Golam Mostafa, chairman of the Bangladeshi company.

The target is to produce raw materials for the textile sector as well as export-oriented products, he noted.

Referring to SFX Group's proposal, Mostafa said in the first phase a complex would be constructed with a daily production capacity of 900 tonnes of polyester.

Of it, 600 tonnes will be PET (polyethylene terephthalate) bottle grade chips while the remaining 300 tonnes polyester staple, which are short lengths of filaments easily capable of blending with other fibres.

In the second phase, a petrochemical plant would be established with local infrastructure and investment, said the entrepreneur. Mostafa said they would eventually require $2 billion in investment and a minimum of 1,000 acres of land, creating 2,500 jobs directly.

Bangladesh needs to import 4 lakh tonnes of polyester staple and 1.5 lakh tonnes of PET chips annually.

As Bangladesh is vying to generate $50 billion through exports per year, it needs backward linkage facilities and import substitutes to minimise lead time, Mostafa said.

An agreement will be signed next month to form the joint venture with a view to becoming a pioneer in the export of raw materials for textiles in the near future, making use of Bangladesh's duty-free access to many countries.

With a production capacity of 2 million tonnes of polyester per year, SFX Group's annual sales amount to $8.62 billion while export earnings standing at $900 million.

Deshbandhu, a leading corporate house in Bangladesh, earns $30 million per year exporting edible oil, sugar and sweaters to European countries.