Spinning sub-sector remains crucial to RMG value chain helping to stabilize supply chain, while controlling costs. The products of the spinning sub-sector are cotton yarn, polyester, synthetic yarn, woolen yarn and blended yarn mixed of cotton and polyester of different counts (mostly up to 80 count). Yarns are being used by the weaving sub-sectors like specialized textiles, handlooms and knitting and hosiery. The growth in the export of clothing with the phasing out of MFA in 2005 has led to the setting up of 350 spinning mills and there has been a boost in investment since 2001.
The private sector spinning mills can now meet around 100% demand of yarn at the domestic level as well as 95% of the demand for yarn for export oriented knit fabrics mills. In addition, almost 85% of cotton yarns and 50% demand for synthetic and blended yarn of export-oriented fabric producing mills are being met by the private sector spinning mills.
Although Bangladesh has production capabilities in manufacture of thread and fabric, the country has to import almost all raw materials, primarily cotton and other man-made fiber e.g. polyester, Viscose and Staple Fiber. The country spends substantial foreign exchange every year to import raw materials and accessories to feed the RMG sector. In the FY 2012-13, the country spent about USD 5.27 billion only to import cotton, cotton yarn and fabrics as well as knit fabrics.
Spinning sub-sector is largely dependent on the overall success of the RMG sector. With raw materials largely imported, spinners have to rely on the price stability of cotton and other imported raw materials. Some spinners at times have engaged in speculation resulting in significant loss in 2011. However, the spinning sector can add value by providing significant cost advantages to RMG sector through efficiency, provided proper infrastructural support is there.
Considering above, SFCS coupled a good number of professional and technical expertise along with extensive industry knowledge to provide the sustainable total solutions to establish a Spinning Mill with cost effective manner.