Listed textile manufacturer Maksons Spinning Mills PLC has decided to surrender its allotted 10-acre industrial plot at the National Special Economic Zone to the Bangladesh Economic Zones Authority (Beza), citing prolonged global economic uncertainty and a slowdown in the textile sector.
In a price sensitive information (PSI) disclosure published on the Dhaka Stock Exchange (DSE) today (24 May), the company said it had earlier informed investors on 11 November and 6 December 2020 about acquiring the industrial plot at the National Special Economic Zone (formerly known as Bangabandhu Sheikh Mujib Shilpa Nagar) in Mirsharai of Chattogram and Feni.
The company’s share price closed at Tk5.60 on the Dhaka Stock Exchange today.
According to Maksons Spinning, weak global demand, uncertainty in export markets and sluggish conditions in the textile industry have made the planned investment less viable under the current circumstances. The company has therefore decided to return the plot to Beza for the time being.
However, the company said it may reconsider acquiring an industrial plot under Beza in the future if economic conditions improve and the textile sector regains momentum.
Industry insiders say Bangladesh’s spinning and textile sector has been facing mounting pressure in recent years due to declining demand in key export destinations such as Europe and the United States, alongside rising energy costs, a stronger dollar, higher bank lending rates and increased production expenses. The situation has forced many companies to defer or scale back expansion plans.
Maksons Spinning Mills PLC, a concern of Maksons Group established in 2003, manufactures cotton carded, combed, slub, organic, BCI and compact yarn for export-oriented knit garment makers.
The company has an annual yarn production capacity of more than 20 million kilograms and operates over 100,000 spindles.
Maksons Group has diversified operations spanning textiles, apparel, logistics, sourcing and real estate, and has long been involved in Bangladesh’s textile and garment supply chain.
The company has yet to publish its FY25 financial statements. Its previous five-year financials showed average annual revenue of around Tk500 crore between FY20 and FY24.
However, revenue in the first nine months of FY25 fell 58% year-on-year to Tk172 crore from Tk409 crore in the corresponding period of FY24. The company posted an operating loss of Tk14.68 crore before financial expenses, which widened to Tk100 crore after accounting for Tk85.66 crore in loan-related expenses.
By the end of the July 2024-March 2025 period, total accumulated losses stood at Tk109.74 crore. With the full-year FY25 loss reaching Tk224 crore, more than half of the losses were incurred in the final quarter (April-June).
At the end of Q3, the company’s total outstanding loans stood at around Tk488 crore, including Tk326.92 crore in short-term loans and Tk161 crore in long-term loans.
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