The project will involve upgrading of the Pyawbwe Textile Factory and its cotton ginning machines to be able to manufacture different types of yarn, and raw materials for local weaving small and medium enterprises (SMEs) and knitting and garment sectors. To facilitate expansion of the knitting, dyeing and garment business,12 new knitting machines, dyeing machines and sewing machines will be installed in 4 new production buildings in a 169-acre project site. A waste water treatment system will be established to purify waste water coming out from the dyeing process.

The project is in line with the Government’s plan to transform the textile sector from Cut-Make-Package (CMP) to Freight-on-Board (FoB). The shift from CMP to FoB requires an increased production capacity in the textile supply chain.

Upgrading machines can increase the amount of production and consequently substitute the volume of raw materials currently being imported from other countries. The proposed project can supply the highly demanded yarn (1/40, 1/7, 1/21) by local textile cottage industries and traditional weaving industries with reasonable price and stable quality.

Upon expansion and installation of new machines, the factory could produce a new product line of soft twist yarn, which is a raw material currently being imported for the knitting and garment sectors.

Installment of new machines in the ginning factory will be able to increase cotton lint production capacity with less trash content.

The Pyawbwe Textile Factory is currently producing a specific type of yarn (1/40’s) used as a raw material for weaving and other marketable types of yarn (1/7’s & 1/21’s). As the factory machines are beyond 10 years, capacity has been declining and heavy maintenance and upgrading are needed to be able to manufacture value-added products in the textile supply chain.

The project is proposed to be implemented using a public private partnership (PPP) approach.