Chinese company Kaixi Group plans to inject $40 million into Bepza EZ for the production of intimate wear apparel.
In a significant move, Chinese investor Kaixi Group has signed an agreement with Bangladesh Export Processing Zones Authority (Bepza) worth $40.05 million for manufacturing intimate garments and related accessories in the Bepza Economic Zone.
The agreement, signed by Md Ashraful Kabir (Member, Investment Promotion, Bepza) and Xiao Hongxi (Chairman, Kaixi Garments Bangladesh Ltd) at the Bepza Complex in Dhaka, marks the latest expansion of Kaixi's operations in Bangladesh.
Kaixi's first project in the Bepza Economic Zone, approved in November 2021, began commercial production in June 2024. Initially, the project employed around 3,700 workers, but it is expected to create jobs for an additional 3,003 Bangladeshi workers with this latest agreement.
The production capacity of the project will be for 18 million pairs of lingerie and undergarments and 20 million pairs of bra foam and bra cups annually.
However, the company faces a logistical challenge due to the absence of nearby worker housing. This lack of proximate accommodation forces Kaixi to bring workers from distant locations, resulting in delayed morning attendance and affecting operational efficiency.
Despite these challenges, Kaixi remains committed to its investment in Bangladesh and the Bepza Economic Zone. Xiao Hongxi, Chairman of Kaixi Garments Bangladesh Ltd, mentioned the operational challenges, including the lack of nearby worker housing, which necessitates transporting workers from distant areas and delays morning attendance.
The Bepza Economic Zone is the largest venture of Bepza, attracting over $1 billion in investments from 45 companies, with four companies already operating commercially. This growing foreign investor confidence despite challenges reflects positively on the zone's attractiveness for businesses.
Xiao Hongxi reaffirmed Kaixi's commitment to Bangladesh and the Bepza Economic Zone, stating that despite operational challenges, the company is focused on growth and operations in the zone.
The latest move by Kaixi Group in expanding their operations demonstrates growing confidence among foreign investors in Bepza, especially within the Economic Zone.
Kaixi Group, having demonstrated growth in their operations within the Bepza Economic Zone, is planning to venture further into Bangladesh's business landscape, potentially investing in real-estate for worker housing to resolve logistical issues and enhance operational efficiency.
Moreover, this strategic decision to invest in technology for improved logistics could lead to Kaixi Group creating new opportunities in the realm of finance and investing, particularly in the real-estate and intimate garment sectors within this zone.
