Matin Spinning’s special unit to start operation on 1 August
Matin Spinning Mills Plc has announced to start the commercial operation of its Special Yarn Unit on 1 August.
The new unit capable of producing 10 tonnes of yarn a day has increased the company's total daily production capacity to 61 tonnes.
The demand for special yarns is on the rise and the high-value products should bring better revenue for the company, said Matin Spinning Chief Financial Officer Mohammad Emarot Hossain.
In February 2021, the publicly listed spinning company announced its plan for the Special Yarn Unit, while its daily card and combed yarn production capacity has been 25 tonnes, melange yarn production capacity has been 10 tonnes and the synthetic yarn production capacity has been 16 tonnes.
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The Special Yarn Unit has been a Tk186 crore project. The company announced to provide Tk61 crore from its own funds there and the remaining Tk125 crore was taken as loans from German Investment Corporation DEG.
The company had said, after completion of the project, daily production would approximately increase by 8.5-9 tons which would bring additional revenue of around Tk100 crore.
Matin Spinning, a DBL Group concern, was listed in 2014.
It has been posting a decent growth in business except from the 2018-19 fiscal year when profitability was hurt due to market conditions and in fiscal 2019-20 whose final quarter was disrupted by the first wave of the pandemic.
However, the spinners' good days after the first wave helped boost the reputed company's revenue and profits in fiscal 2020-21 and the growth continued till the first nine months of fiscal 2021-22.
With the jump in income, its cash dividends per share soared to Tk4 for fiscal 2020-21, from Tk1.8 a year ago.
Matin Spinning shares closed 2.75% higher at Tk71 on Thursday, while the net asset value was Tk57.54 against each share having a face value of Tk10.
Its paid-up capital is Tk97.5 crore. Sponsor-directors hold 32.72%, institutions 42.52% and the general public 24.76% shares in the company.
