Key Takeaways
- 4A Yarn Dyeing, a supplier to major retailers, generates its own power through solar and diesel.
- The company has installed solar panels to meet 40% of its electricity needs.
- Despite rising fuel costs, 4A has managed to maintain production without significant disruptions.
A Bangladeshi garment manufacturer, 4A Yarn Dyeing, has managed to avoid production disruptions during a widespread energy crisis by generating its own power, according to a report from Dawn.
The company, which supplies major retailers including Walmart, Gap, and Next, has diversified its energy sources, including solar power, to meet around 40% of its electricity needs.
Company co-owner Abdullah Hil Nakib stated, 'We never stayed at a single-source energy dependency. We had backups for everything.'
Despite the company's efforts, the cost of diesel has increased by 2 to 3%, adding up to 5 million taka (Rs11.3m) to its monthly fuel bill.
The energy crisis in Bangladesh, exacerbated by a gas and power shortage, has affected many factories, with 55% of knitwear factories seeing buyers cancel or cut orders, and 78% partially halting production.
The situation has intensified as Bangladesh raised fuel prices by up to 17.4%, citing soaring global prices and higher shipping costs due to the Middle East conflict.
To mitigate future disruptions, 4A plans to install an industrial-scale battery system that would allow operations to continue for several hours if power sources fail.
The Bangladesh ready-made garment sector, which accounts for over 80% of export earnings and employs about 4 million workers, is facing significant challenges due to the energy crisis.
The power minister stated that steep fuel price hikes are slowing industrial growth, causing electricity outages and hurting spending on development projects due to higher gas subsidies.
We never stayed at a single-source energy dependency. We had backups for everything.
Abdullah Hil Nakib, Company co-owner, 4A Yarn Dyeing Limited
