British, Chinese Firms Offer $23m Plan to Reopen Beximco Factory

Amid mounting bank liabilities and the prolonged closure of its factories, Beximco Group has launched an initiative to restart one of its units under a new business model, with two British and Chinese companies proposing a combined investment of $23 million.

Production at the factory could resume as early as April next year, subject to the required government approvals. Beximco plans to reopen Prefix Fashions Ltd as the first of 16 closed garment and textile units at its industrial park in Kashimpur, Gazipur.

Under the proposed arrangement, British firm Charter HCP Ltd and Chinese company Besting Ltd will invest in the project, while Revival Global, a Japan-Bangladesh joint venture, will serve as the asset manager.

The foreign investors are expected to sign a five-year lease or agreement with Beximco Group. Export earnings will be deposited directly into a designated bank account, allowing the lien-holding banks to automatically deduct loan instalments.

The structure is designed to prevent Beximco from directly controlling funds allocated for debt servicing, which the entrepreneurs believe will ensure more regular repayment of outstanding loans.

Officials from Beximco and Revival Global are scheduled to meet the chairman of Invest Bangladesh, the country’s apex investment facilitation agency, on 11 October to discuss the progress of the initiative.

The reopening of Prefix Fashions will require approvals from the Bangladesh Investment Development Authority (BIDA) and Bangladesh Bank.

Once operations resume, the factory is expected to initially employ about 2,500 workers. Most of its output will be exported, with jackets projected to account for around 90% of total production.

The entrepreneurs estimate that the factory could generate about $500 million in garment exports within two to three years of restarting production.

If the Prefix Fashions project succeeds, Beximco plans to gradually restart the remaining 15 closed units at the industrial park. The move could create jobs for more than 30,000 workers who lost employment following the shutdowns.

Beximco’s factories were subjected to vandalism and arson following the change of government on 5 August 2024. The interim government later announced the closure of the factories in March 2025 after the group failed to pay workers’ wages and other benefits.

Earlier, the government had provided Tk526 crore in financial assistance to settle workers’ outstanding dues.

Salman F Rahman, former private industry and investment adviser to then-prime minister Sheikh Hasina, is associated with the ownership of Beximco Group. He is currently in jail.

Reports indicate that Beximco Group’s total bank liabilities exceed Tk40,000 crore. The 32 factories at its Gazipur industrial park account for Tk29,925 crore of the outstanding bank loans. State-owned Janata Bank is the largest creditor, with around Tk23,285 crore owed to it.

Against this backdrop, Beximco is seeking to revive production and exports by initially reopening a single factory through foreign investment.

If the Prefix Fashions model proves successful, the same approach could eventually be used to restart the other closed units at the industrial park.