With increasing demand and consumption of steel and steel products the country’s steel manufacturers are going to make fresh investment in establishing new plants to expand their capacity.
Leading steel manufacturers like Bangladesh Steel Re-Rolling Mills (BSRM), KSRM and PHP Group are going to increase their production capacity with setting up new factories in Mirsharai Economic Zone.According to industry insiders, these three groups have submitted investment proposal to authorities concerned seeking lands in Mirsharai Economic Zone in Chittagong for their plants.
BSRM, KSRM and PHP Group have planned to invest $5029 million in setting up new factories in their expected lands in Mirsharai EZ to produce steel and steel products as part of their business expansion, said BEZA sources.
According to the proposals, it was learnt that the BSRM group has submitted two separate investment proposals for establishing iron plant and steel mill shop. They are going to invest $59.45 million and sought some 100 acres of land in Mirsharai economic zone’s sector- 4 for iron plant and $180 million for another steel mill factory over 40 acres of land.
Another market leader KSRM is interested to build steel and cement plants in Mirsharai over 250 acres of land and planned to invest $789 million for the new venture. PHP Steel Works Ltd, a concern of PHP group, is going make a big investment of $4000 million for establishing a new steel factory and sought 500 acres of land in Mirsharai from BEZA.
BEZA sources said that the proposals have been evaluated and awaiting contract signing for materialising the projects.
“We have evaluated the investment plans and found the proposals beneficial for the industry and economy as well”, said BEZA acting executive chairman Dr Emdadul Haque.He also said that BEZA is developing Mirsharai Economic Zone to make the zone as next economic hub of the country having around 30,000 acres of land.
Once their investment plan start rolling, they expected to create some 7056 employment in their new plants. Of them, BSRM’s two new plants are expected to create around 2700 employment opportunities while KSRM is expected to create around 2000 employment opportunities and PHP Group’s new expansion plan will create around 1500 new employment opportunities.
About the employment creation, BEZA acting chairman Dr Emdadul Haque said that creation of employment opportunities is the biggest challenge for country. New economic zones across the country will play vital role in creating new employment, he added.
BSRM is the leading group in steel sector having 700000 MT production capacities in steel and 450000 MT capacities in steel re-rolling yearly. KSRM has the ability to produce 8 lac metric tons a year.