Bangladeshi Garment-Maker Beats Energy Crunch
4A Yarn Dyeing, a supplier to Walmart and Gap, generates its own power, including through solar panels, to maintain production despite 55% of peers facing order cancellations
A Bangladeshi garment-maker, 4A Yarn Dyeing, is fighting the Middle East energy crunch by generating its own power, allowing it to maintain production uninterrupted. The company, which supplies to major brands like Walmart, Gap, and Next, has invested in solar panels and other power generation methods to reduce its reliance on the national grid.
4A Yarn Dyeing's self-sufficiency in energy has helped it avoid the production halts and order cancellations faced by many other garment makers in Bangladesh. A recent survey of 134 knitwear factories found that 55% had seen buyers cancel or cut orders due to gas and power shortages since late August, while 78% had partially halted production.
The company's factory, which employs nearly 7,500 workers, meets around 40% of its electricity needs through solar power. The rest of its energy needs are met through its own gas and diesel generation. This has allowed 4A Yarn Dyeing to continue production without interruption, despite the energy crisis affecting the country.
However, the cost of doing business for 4A Yarn Dyeing has increased due to the energy crisis. Costlier diesel has pushed the company's production costs up by 2 to 3%. The increased fuel cost amounts to 5 million taka (Rs11.3m) per month.
## Why it matters The energy crisis in Bangladesh has significant implications for the country's garment industry, which is the world's second-biggest exporter after China. The industry is a major contributor to the country's economy, and any disruption to production can have far-reaching consequences. 4A Yarn Dyeing's ability to generate its own power has helped it stay ahead of the competition, but the increased cost of doing business may affect its profitability in the long run.
The company's success in maintaining production despite the energy crisis is a testament to its forward-thinking approach to energy generation. As the energy crisis continues to affect Bangladesh, other garment makers may need to follow 4A Yarn Dyeing's example to stay competitive. The company's investment in solar panels and other power generation methods has paid off, and it is likely to continue to benefit from its self-sufficiency in energy in the future.
