Pankaj Dastider
CHITTAGONG, Mar 22: BSRM Steel Re-rolling Mills looks to double its production by transforming the old unit at Nasirabad into a new one soon to cater to the growing local demand for steel.
The transformation has already been completed with setting up of completely new machinery and the new plant is going to produce quality steel by the end of this June, sources have said.
BSRM (Bangladesh Steel Re-rolling Mills) has invested around Tk 7.0 billion in the Nasirabad factory. Out of the amount, Tk 6.0 billion has been spent for import of modern and sophisticated machinery, the sources have said. About 800 people will get jobs at the factory.
"We have already dismantled our machinery of the 0.15 million (1.5 lakh) tonne annual production capacity BSRM Steel Mills at Nasirabad and replaced those with the new machinery to enhance the factory's annual capacity to 0.70 million tonnes," Executive Director of BSRM Tapan Sengupta said on Sunday.
He said that the BSRM's current annual production capacity is about .80 million tonnes which will stand at around 1.5 million tonnes by the middle of next calendar year.
The country is ready to get the momentum of much-anticipated development in terms of infrastructure and housing facilities. So the steel industry in the country is headed for a revolution, he mentioned.
Annual demand for steel in the country hovers around 3.5 million tonnes but most of the country's 300 steel mills are running with old technology and are using the plates of scrap ships.
Some 10 mills including the BSRM produce steel using modern technology and fulfil 30 per cent of the country's total production while the 70 per cent steel is being produced in the country by smaller mills.
Currently, the larger steel factories have started investing vast amounts of money in their plants. BSRM undertook the venture to modernise its steel plant in the city's Nasirabad Industrial Area as part of that move.
Mr Sengupta said that demand for quality steel in the country is increasing day by day, that is why the larger steel plants like Abul Khair Steel, GPH and BSRM are making fresh investments in the sector.
"We made vast investment in one of our old plants and this transformation takes place because we will have to survive in the steel market. Unless we modernise our factory we will not be able to exist," he said.
He said that they have also sought duty exemption which has already been recommended by the Bangladesh Tariff Commission after scrutiny.
Three other major steel factories in the country were earlier exempted other extra charges and duty except 5.0 per cent import duty on import of raw materials by government agencies concerned to encourage local investment.
The BSRM earned post-tax profit of Tk 1996 million in the calendar year 2013. The management hopes that the money it has invested in the Nasirabad Steel Plant will be realised in the next six years.
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