Leading steel manufacturer BSRM is gearing up to launch
its $108 million new plant in Chattogram's Mirsarai by late June or early July.
With an annual production capacity of 8 lakh tonnes, this facility aims to
raise the company's share in the local steel market to 34% from 23% now and
cater to rising demands for steel products.
"The
construction of the new plant on 20 acres of land in Mirsarai is nearing
completion. We want to start trial production by late June or early July,
followed by full commercial production within a month," said Tapan
Sengupta, deputy managing director of BSRM.
He
also told TBS that the new factory is expected to create employment
opportunities for approximately 1,000 individuals.
To
set up the new re-rolling plant, BSRM secured $50 million in
low-cost loans from the Japan International Cooperation Agency (Jica), making
it Bangladesh's first private sector recipient under the Japanese agency's
green industrialisation initiatives.
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With
the new plant fully operational, boosting BSRM's total production capacity to
24 lakh tonnes, the steel giant hopes to command more than a third of the
country's steel market.
According
to BSRM, the total cost of the new factory construction project is estimated at
$108 million (equivalent to Tk1,188 crore). Out of this amount, Jica lent $50
million, with the loan to be repaid over 12 years. The loan agreement was
signed on 4 October last year.
Additionally,
Prime Bank, Eastern Bank, City Bank, and Infrastructure Development Company
Limited (Idcol) extended local currency financing to augment the production
capacity of one of BSRM's melting plants in Mirsarai.
In
addition, it has four melting factories – two in Chattogram's Nasirabad
industrial area and two in Mirsarai which, with recent upgrades, can produce 24
lakh tonnes of billets, a raw material for steel production, annually.
"Currently,
we have to import 85,000 tonnes of steel wires annually for our steel wire
industry. To reduce this dependence on imports, the new factory is designed to
produce 150,000 tonnes of wire steel," DMD Tapan Sengupta said.
Jica promoting green industrialisation
Jica
has traditionally provided loans to the government for large-scale projects
like the MRT and Matarbari deep sea port. However, in a landmark move, the
Japanese aid agency extended loans to BSRM Steel Limited, primarily to support
the green factory initiative.
In a
statement following the loan agreement last year, Jica said emissions of
environmental pollutants and greenhouse gases from steel plants are a
significant challenge. This loan aims to help address that issue.
According
to BSRM's corporate booklet, as part of their commitment to the environment,
BSRM factories have achieved zero emissions by implementing Japanese Air
Pollution Control (APC) systems across all their facilities.
Additionally,
BSRM has generated value from dust collection, exporting dust worth $22.6
million since 2015. They have also invested in advanced European Water
Treatment Plants (WTP) for their factories, which recycle 373,700 cubic metres
of used water with zero wastage.
Furthermore,
BSRM converts 120,000 tonnes of slag waste generated annually at their steel
plant into eco-friendly construction material as an alternative to bricks. For
this initiative, BSRM received the "SDG Brand Champion Awards 2023".
"We
use recycled water in our factories, meaning zero wastage. All our factories
are equipped with Air Pollution Control (APC) systems," Tapan Sengupta
said.
"Plans
are in place to fulfil the factories' power needs through solar energy.
Approximately 10MW of solar power will be installed in phases for the steel
factories," he added.
Over
the years, BSRM steel products have been chosen solely for building major
national landmarks and infrastructures such as the Padma Bridge, Rooppur
Nuclear Power Plant, Hatirjheel project, Zillur Rahman Flyover, Mayor Hanif
Flyover and Shah Amanat Bridge were built with BSRM, according to the company
website.
The
company has a history spanning 72 years, starting with its first steel factory,
"East Bengal Steel Re-Rolling Mills," established in 1952. Following
Bangladesh's independence in 1971, it was renamed Bangladesh Steel Re-rolling
Mills (BSRM), marking the beginning of its expanded business operations.
According
to the company, in the fiscal 2022-23, it generated revenue of $1.691 billion
from the sale of 1,777,670 tonnes of steel products. Currently, BSRM provides
direct employment to around 5,000 individuals and indirect employment to about
25,000 others.
According
to the Bangladesh Steel Manufacturers Association, the country has 55 steel
re-rolling mills along with over 100 semi-automatic and manual mills,
collectively producing 70-75 lakh tonnes of steel annually. Approximately 50-55
lakh tonnes of this steel is consumed domestically, with the remainder being
exported overseas.
Of
the total steel consumed within the country, 60% is utilised for implementing
government infrastructure projects while the rest is used in the private
sector.