Abul Khair Group has embarked on a drive to restore Bangladesh’s once-flourishing jute industry, reopening shuttered private-sector mills and tapping existing production capacity to revive the country’s ‘Golden Fibre’ and strengthen its position in global markets.
The initiative comes as the traditional jute sector, once a major pillar of the national economy and a leading source of export earnings, has suffered a prolonged decline.
The closure of Adamjee Jute Mills, followed by the shutdown of other state-owned mills, including Bawany and Amin, and numerous private-sector factories, has eroded production capacity and export potential, while leaving thousands of workers without jobs.
Rather than investing in new factories, Abul Khair Group is seeking to bring closed and ailing mills back into operation by making use of their existing infrastructure and manufacturing facilities.
Production has resumed at six mills under the group’s initiative: Razzak Jute Industries, Faridpur Jute Mill and Damashi Jute Mill in Faridpur; Ahiyan Jute Mill in Khulna; Nasir Jute Mill in Kushtia; and AR Jute Mill in Magura.
Jute yarn manufactured at these facilities is already being exported to international markets, including Turkey and China.
The group has set an annual export target of around 80,000 tonnes of jute yarn and jute products, with the aim of generating exports worth approximately Tk 1,500 crore by December 2026.
The initiative has also created direct and indirect employment for more than 15,000 people, while the group has applied to the relevant authorities to reopen another three to four closed state-owned jute mills.
Sheikh Shabab Ahmed, head of corporate affairs and legal at Abul Khair Group, said the capital-intensive nature of the jute industry had prompted the group to prioritise the rehabilitation of existing factories over establishing new ones.
“Many private-sector jute mills in the country have remained closed for a long time. Therefore, instead of establishing new factories, we decided to utilise the infrastructure and capacity of existing, closed facilities,” he said.
“This approach not only brings shuttered industrial units back into production but also creates new employment opportunities and avenues for export.”
He said the international reputation of Bangladeshi jute, coupled with growing demand for environmentally friendly products, offered considerable scope for expanding the industry.
“The quality of Bangladeshi jute is internationally recognised, and the global demand for eco-friendly products is steadily rising. To capitalise on this potential, Abul Khair Group decided to invest in jute and jute-based products,” he said.
The group’s next objective is to expand the production and export of higher-value, value-added jute products, he added.
Ahmed said the revival programme was intended to deliver benefits beyond restarting factories, including employment generation, foreign currency earnings, local economic activity and a more sustainable market for jute farmers.
“We believe that this initiative to revive closed jute mills goes beyond merely restarting factories. It plays a pivotal role in creating jobs, earning foreign currency, stimulating the local economy and, above all, establishing a robust and sustainable market for the country’s jute farmers,” he said.
The group is pursuing long-term investment and expansion in the sector, with the broader aim of restoring closed mills to production, creating jobs and reclaiming Bangladesh’s position in the global jute market.
The revival effort is expected to support the country’s drive to unlock the economic potential of its traditional jute industry, particularly through renewed manufacturing capacity and the development of higher-value products.