Japanese textile titan, Toray Group, will pour around US$ 200 million into Bangladesh’s textile sector, banking on the country’s cheap labour and a potentially huge apparel market. Initially, the Tokyo-based corporation, billed as the world’s largest textile producer, has decided to invest $90 million by September this year at the newly-developed Adamjee Export Processing Zone.

As part of its investment plan, Toray will also relocate its Malaysia-based subsidiary, Pan Fabric Toray, in Bangladesh, the sources added.

The official pointed out the Japanese company’s investment plan reflects Bangladesh’s competitiveness in the textile industry, driven mainly by cheap labour. BEPZA sources said Toray has already recruited some local manpower and is imparting intensive training to them in Malaysia. If implemented, the Toray Group’s investments will dwarf those of India’s textile giant Arvind Group that pumped nearly $ 66 million into the Comilla EPZ to manufacture textile products.

However, sources at the BEPZA, said the Japanese company wanted uninterrupted supply of power and treated water at the plant to ensure smooth manufacturing process. Toray’s relocation move is thought to be part of the global structural change in business architecture, seeking low-cost manufacturing bases.

The company’s goal is to transform its business structure to create new value by developing a new supply chain management format and building new business solution models, according to its web site.