Japan biggest steelmaker Nippon Steel and Sumitomo Metal Corporation Group is going to invest in Bangladesh’s steel sector aiming to make inroads into the country.
The global giant is now planning to have a joint venture investment with the local steelmaker McDonald Steel Building Products Limited (MSBPL).According to industry sources, Nippon is going to implement the plan with its local partner to invest around Tk 500 crore primarily and arranging lands for their new venture.
Bangladesh Economic Zones Authority (BEZA) sources confirmed that the new venture had sought about 100 acres of land at Mirsharai Economic Zone.
BEZA executive board in principle has given nod to lease the lands to the Japanese steel maker in Mirsharai, which is going to be the next industrial hub of the country, said a BEZA top official seeking anonymity.
Towards this direction, a land lease agreement will be signed between the new JV NipponMcdonald and Bangladesh Economic Zones Authority on Sunday, BEZA Sources said.
The new venture has decided to invest about Tk 500 crore at the first stage and they have plans to make the investment double within a short. The new venture is expecting to create employment for around 2,000 people in Mirsharai.
According to their investment plan, the new steel venture will build the factory over 60 acres of land while 40 acres will be used in greenery, roads, accommodations and other purposes.The venture will start land development work in next January and eventually will build manufacturing unit and other infrastructure in July. Their target is to serve 80 percent of products in the local market while rest 20 percent will be made for export, company insiders said.
The company will produce fabricated steel at initial stage and later they will start producing steel and metal machineries for automobile industries. Established in October 2012 by the merger of Nippon Steel Corporation and Sumitomo Metal
Industries, Ltd., Nippon Steel & Sumitomo Metal Corporation (NSSMC) is the world-leading integrated steel producer.
NSSMC makes a wide range of value-added steel products, in more than 15 countries as well as at 13 steelworks in Japan. NSSMC is a holding company for five businesses: steelmaking, engineering, chemicals, new materials, and system solutions.
On the other hand, local venture partner MSBPL is the pioneer in pre-engineered steel building construction in Bangladesh experienced in pre-fabricated steel buildings for more than two decades and established its own production facility in 1998 in Gazipur.