Beximco Pharma exports Oseltamivir capsules to Latin and Central America

http://www.theindependent-bd.com/details.php?nid=126445

Beximco Pharma exports Oseltamivir capsules to Latin and Central America

Economic Reporter

Beximco Pharmaceuticals Ltd. (BPL) yesterday announced that it has commenced supplying Oseltamivir capsules, Oseflu (BPL’s generic version of Tamiflu), to Latin and Central American countries, the regions most affected by the recent H1N1 swine flu (influenza A) outbreak.

The World Health Organization (WHO) estimates that 39 countries have officially reported 8,480 cases of influenza A (H1N1) infection, (WHO update 31, 17 May 2009). H1N1 appears to be more contagious than seasonal influenza and the new virus causing swine flu has been found to respond positively to Oseltamivir treatment.

Nazmul Hassan, Managing Director of Beximco Pharmaceuticals, commented:  “BPL is the first company from Bangladesh to help combat the swine flu outbreak in Latin and Central American countries. The company has already supplied Oseflu stocks to the Ministry of Health in Chile and Belize, as well as to high profile Government and non-Government agencies. We look forward to helping to combat this virus which has already affected many people across the world.”

Beximco Pharmaceuticals introduced Oseltamivir capsule Oseflu in 2006 for the prevention and treatment of influenza including swine and bird flu. In the same year BPL supplied Oseflu to the Bangladesh and Myanmar governments for stockpiling to combat the Bird flu pandemic. The company has increased its Oseflu stock to ensure further supply into other countries in the near future.

Five-year work plan for ICT development

http://www.thefinancialexpress-bd.com/2009/05/19/66984.html

Five-year work plan for ICT development

Meanwhile, another FE report adds: Finance Minister AMA Muhith has said the government will devise a five-year work plan for development of the country’s information communication technology (ICT) sector to help achieve its goal of ‘Digital Bangladesh’.

“We will give a work programme for the next five years, where the objectives of achieving our Digital Bangladesh will be stated,” Mr Muhith told newsmen Monday after a meeting with a delegation of local computer and software operators at his ministry.

Implementation of e-governance, development of manpower, and development and protection of local software industry will be top on the proposed five-year work plans, the minister added.

He, however, observed that for the successful implementation of e-governance, the entire government functionary would have to be integrated with the computer networking.

To help achieve such objective, the government will take necessary steps to ensure uninterrupted budgetary allocations for development of the country’s ICT sector.

About the proposals made by the local ICT leaders, the finance minister said all the existing taxes, which are now in force at some limited stages, will go from the next budget.

“The domestic software industry has to be protected,” he said.

President of Bangladesh Association of Software and Information Services (BASIS) Habibullah N. Karim and President of the Bangladesh Computer Samity (BCS) Mostafa Jabbar along with other sector representatives were present at the meeting.

The BASIS placed a number of proposals including allocating 5.0 per cent of the government’s annual development programme (ADP) for the ICT related projects and 2.0 per cent of the revenue budget for operations and maintenance of ICT-based citizens’ service delivery systems, as has been proposed in the National ICT Policy 2009.

Dhaka, Colombo to ink MoU on fishery sector development

http://www.bssnews.net/newsDetails.php?cat=8&id=34095&date=2009-05-19&PHPSESSID=2028c11b073c9ba02a7b885f02ba4e6c

Dhaka, Colombo to ink MoU on fishery sector development

DHAKA, Bangladesh, May 19 (BSS)- Bangladesh and Sri Lanka will sign a memorandum of understanding (MoU) soon on the development of the fishery sector.

The issue was discussed when Sri Lankan High Commissioner Vadivel Krishnamoorthy called on Fisheries and Livestock Minister Mohammad Abdul Latif Biswas at his office here today.

Bangladesh and Sri Lanka have already reached a consensus on the aspects of the MoU that include exchange of experiences and technology between the two countries on preservation and extracting fishery resources.

The minister expressed his interest to know the Sri Lankan experiences in rehabilitating the marginal farmers during the post-tsunami period.

“The people and fishermen community of Bangladesh and Sri Lanka suffered a huge loss due to the tsunami and both countries could share experiences in their rehabilitation,” he said.

The Sri Lankan high commissioner assured Bangladesh of providing full cooperation to this end.

He also agreed on exchanging experiences and animals with Bangladesh for the development of zoo management and raising the number of the animals.

Krishnamoorthy apprised the minister of the possible visit of the Sri Lankan president to Bangladesh.

Terming Sri Lanka as a long-tested friendly country of Bangladesh, the minister said both countries staying on the same platform have been cooperating with each other on various bilateral, regional and international issues.

He informed the high commissioner that Bangladesh has been eagerly waiting to warmly welcome the Sri Lankan president.

Shipbuilding to help turn Bangladesh into middle-income country: Industry Minister

http://nation.ittefaq.com/issues/2009/05/18/news0534.htm

Shipbuilding to help turn Bangladesh into middle-income country: Industry Minister

Business Report

Industry Minister Dilip Barua Saturday said growing shipbuilding sector would help turn Bangladesh into a middle-income country through earning more foreign exchanges for the country.

He made this remark during his visit to Western Marine Shipyard Ltd at 4 no Kolgaon under Patiya upazila in Chittagong on Saturday.

The Minister said that shipbuilders in Bangladesh had demonstrated combined efforts to capture significant orders from international buyers from Denmark, Germany, The Netherlands and Finland for building vessels.

Barua said cheap labour, better infrastructure facilities and policies conducive to foreign investors were helping country’s shipbuilding industry to grow.

Underscoring the necessity of foreign investment for the economic development of the country, the industries ministers urged foreign entrepreneurs to invest more Bangladesh.

He thanked the Dutch government through Danish Ambassador in Dhaka for its support to Bangladesh’s shipbuilding industry.

The minister said Western Marine Shipyard had been contributing for developing of the sector. He also pledged to extend all possible supports to the company from the government.

Danish Ambassador in Dhaka Einar H. Jensen and local MP Shamsul Hoque Chowdhury were present as special guests at the ceremony, which was conducted by Major (Rtd) Jalal Khaled, Quality Management Director of Western Marine Shipyard Ltd.

Danish Ambassador Jensen appreciated a recommendation of a government formed committee to allocate Tk 400 crore for the shipbuilding industry.

In his welcome address, Western Marine Managing Director Md Sakhawat Hossain said the industry had brought a silent revolution in the country’s economic development.

He said Chittagong could be a hub for shipbuilding industry due to its geographical advantage and natural deep-water harbour. “Eastern bank of river Karnaphuli is a perfect site to develop the industry in Chittagong,” Hossain added.

He said about 10 to 12 prospective shipbuilders are interested to establish shipyards in Chittagong.

Earlier, the minister and other guests visited the shipyard and expressed their satisfaction.

Western Marine has built an international standard shipyard on 20-acre area at 4 no. Kolgaon under Patiya upazila in Chiitagong.

Currently, Western Marne is engaged in building five container vessels for Denmark, 12 multipurpose vessels for Germany and one floating reception vessel and pontoon barge for Finland. The total cost of the ships is equal to approximately US $200 million.

Turkey shows interest to invest $1-2 bln in setting up EPZ

http://nation.ittefaq.com/issues/2009/05/18/news0536.htm

Turkey shows interest to invest $1-2 bln in setting up EPZ

UNB, Dhaka

Turkey has shown keen interest to invest US$ 1-2 billion for setting up an Export Processing Zone (EPZ) in Bangladesh.

A three-member business delegation of Turkey-Bangladesh Chamber of Commerce and Industry led by its President Fikret Cicek conveyed the Turkish interest at a meeting with Commerce Minister Faruk Khan at his office today (Sunday).

Welcoming the proposal, the commerce minister assured the delegation of all necessary support from Bangladesh government to implement it.

He also proposed to the delegation to think about setting up a special Turkish industrial zone outside capital Dhaka.

Terming the present government as business friendly, Faruk Khan said: “Our government is ready to provide all kinds of support for the promotion of business in the country.”

He said although the whole world is struggling to cope with ongoing economic recession, export and investment in the country increased this year.

The delegation proposed to import pulses from Turkey, saying that they had a bountiful production of different varieties of pulse this year.

The Commerce Minister told the delegation that the government would consider the matter in due course of time.

Myanmar proposes road network with China, Bangladesh

http://www.newagebd.com/2009/may/18/front.html#21

Myanmar proposes road network with China, Bangladesh
Reuters/Bdnews24.com . Dhaka

Myanmar has proposed expanding a planned road project with Bangladesh to link up with China in a tri-nation network, a senior foreign ministry official said on Sunday.

The proposal was made during talks between the Bangladesh foreign minister, Dipu Moni, and her Myanmarese counterpart U Nyan Win in Yangon on Saturday, he said.

China has friendly relations with both countries and is a major trade partner. With nearly $2 billion annual exports to Bangladesh it is the country’s largest trade partner after India.

Bangladesh and Myanmar signed a deal in July 2007 to construct a 25km road to connect the two countries and construction will begin soon, officials at the communications ministry said.

‘Both Myanmar and China are interested to set up the tri-nation road network,’ the statement quoted the Myanmar foreign minister as telling his Bangladesh counterpart.

There is no road linking Bangladesh and Myanmar, although there are two transit points along the border. Bangladesh will fund the road, most of which will be inside Myanmar, with only about 2km in Bangladesh.

Both countries believe that the road will help boost bilateral trade, currently worth only around $60 million, a spokesman for the Bangladesh foreign ministry said.

Bangladesh and Myanmar share a 320-km border, partly demarcated by the River Naf, a regular route for smuggling and illegal crossings by minority Muslims fleeing what they say is persecution by Myanmar’s military junta.

Tension rose between the two usually friendly neighbours last October when Myanmar started exploring for oil and gas in a disputed area of the Bay of Bengal, defying protests by Dhaka.

Industrial group offers heavy duty FRP manhole for Dhaka

http://www.theindependent-bd.com/details.php?nid=126205

Industrial group offers heavy duty FRP manhole for Dhaka
UNB, DHAKA

A local manufacturer of plastic and other consumer goods yesterday announced their brand-new product named fiberglass reinforced polyester (FRP) manhole-cover that gets thieves no gains and can last long sustaining pressure of heavy-duty vehicles.

Addressing a press conference at its office in the old city, officials of Naseem Group said that the existing alloy-made manhole-covers could easily be replaced with the new covers which will be cheaper and more sustainable as well. “Our FRP-made manhole covers can replace the existing alloy-made covers which are prone to theft and pose serious health risks,” said the Group’s Managing Director, Rashid Ali Khan.

He also claimed that the new manhole-covers are not recyclable, but high pressure resistant. It can bear with around 30 tons. They have no resale value-and so no lure for the thieves, who render thousands of manholes to lid-less traps all around the city.

In Dhaka and other metropolitan areas across the country, it has been a major problem to use the allow-made or iron-made manhole as those either frequently break down under overpressure or are stolen by thieves.

“Considering this problem, we have planned to commercially produce such FRP-made manhole, which is being used by many developed countries. But to encourage our new venture, the government will have to come up with policy supports like tax incentives,” Khan told the press conference.

He, however, informed that his industrial group has had interaction with Dhaka WASA and Dhaka City Corporation who are mainly using the existing iron manholes. “They are examining our product.”

Naseem Group, which produces more than a hundred types of plastic and other metallic products, claimed to be the pioneer in plastic industry in the country as the group’s first unit was established way back in 1949. This year, the Group is celebrating its 60th anniversary.

The company is now also producing FRP lining on gas cylinder. The officials of the Group said the molded grating on gas cylinders can protect life and property in case of explosion.

When these CNG cylinders explode, they hit a large area and whoever is inside that periphery is affected. Casualty may also take place.  But if this lining is done, then even on explosion, cylinders will not burst into the air and so lives are secure. They mentioned that many people are not inclined to go for these CNG cylinders, but if this technology is introduced, these will bring in a lot more people in the loop of cylinder age.

Govt to do everything for ship-building sector: Dilip

http://www.thefinancialexpress-bd.com/2009/05/17/66797.html

Govt to do everything for ship-building sector: Dilip

CHITTAGONG, May 16 (BSS): Industries Minister Dilip Barua Saturday said that the present government would do everything possible to help flourish the country’s ship building sector.

“Ship building industries not only act as image builder of Bangladesh but also earn huge foreign currency by exporting ships abroad,” the minister added.

The Industries Minister said this while paying a goodwill visit to Western Marine Shipyard Limited (WMSL).

Danish Ambassador in Bangladesh Einar H Jensen, Shamsul Hoq Chowdhury, MP and Managing Director of WMSL Sakhawat Hossain, among others, also spoke on the occasion. Dilip Barua said industrialisation is essential for creating jobs for the unemployed people of the country and for this reason the government is going to set up public sector industries and also joint venture ones.

“According to the election pledge of Prime Minister Sheikh Hasina we want to employ at least one member from each family,” Dilip said adding that keeping this in view, the government is going to formulate a time-befitting industrial policy for balanced growth of the industrial sector,” he added.

Assuring all-out support of the government to make the ship-breaking sector financially profitable, the Industries Minister called upon the entrepreneurs to put their best efforts for providing upgraded services to the ship buyers and brighten the reputation of the company as well as the country.

He also assured the foreign investors of favourable environment and requested them to invest in the country’s industrial sector.

Danish Ambassador Einar H Jensen said increased growth cannot be achieved overnight, but it may be possible over time by means of coherent policies at local, regional and international levels.

Paxar to invest $24.601m in KEPZ

http://www.newagebd.com/2009/may/18/busi.html#18

Paxar to invest $24.601m in KEPZ
Business Desk

Netherlands-US joint venture Paxar Bangladesh Limited will set up a garments accessories manufacturing industry at the Karnaphuli Export Processing Zone.

The company will invest $24.601 million in setting up their unit and will produce garments accessories. It will also create employment opportunity for 519 Bangladeshi including eight foreign nationals.

An agreement to this effect was signed on Sunday. Bangladesh Export Processing Zone Authority member (engineering) Mahbub Ul Alam and Paxar Bangladesh managing director Pradeep J Sugathadasa signed an agreement on behalf of their respective sides at the BEPZA Complex in Dhaka.

BEPZA executive chairman Brigadier General Jamil Ahmed Khan and officials from both the organisations were present on the occasion.

Govt urged to take initiative: Stop construction of Tipaimukh Dam

http://nation.ittefaq.com/issues/2009/05/16/news0347.htm

Govt urged to take initiative: Stop construction of Tipaimukh Dam

Speakers at a discussion yesterday called upon the government to take all possible initiatives to stop the construction of Tipaimukh dam on Borak River saying that the northern and eastern side of the country would be turned into desert due to the effect of the construction of Tipaimukh dam.

They said that the Government is silent when the Indian government is implementing the construction of the dam violating the Internatinal River Law and denying the interest of Bangladesh.

Chirantan Bangladesh Kendriya Sangsad organised the discussion on ‘Water Agression of India: Farakka to Tipaimukh’ at the National Press Club in the city to mark the historic Farakka Long March Day.

Former Minister and BNP Leader Barrister Moudud Ahmed attended the programme as chief guest with President of the organisation Dr Mustafizur Rahamn Iran in the chair.

Professor of Jahangirnagar University Dr Tarek Shamsur Rahman presented a keynote paper while former energy adviser Mahmudur Rahman, former vice cahncellor of Dhaka University Prof Dr Emaj Uddin Ahmed, former lawmaker AKM Rafiqullah Chowdhury, former Director General of BDR Maj Gen (Retd) Fazlur Rahman, Assistant Secretary of Bangladeh Jamaat-e- Islami Mohammad Kamaruzzaman, Editor of Daily Naya Diganta Alamgir Mohiuddin, General Secretary of the organisation Hamdullah Al Mehdi, among others, took part at the discussion.

Barrister Moudud said that that any country could not construct any dam on the international river without consent from other side, but India already violated it by starting the construction of Tipaimukh dam on Borak River.

We have to form a strong movement against the construction of the dam to protect our own interest, he added.

He called upon the people to be united forgetting little plolitical differences to launch the movement.

Mahmudur Rahman said that at the time, the nation is remembering the legendary leader Moulana Abdul Hamid Khan Bhasani who formed a strong movement against India demanding demoliation of Farakka dam.

He called upon the political parties to declare the national programe to protect the country from desertification by Tipaimukh dam.

Emaj Uddin said that the Tipaimukh dam would seriously affect not only in greater Sylhet, it is also going to bring negative ecological and environmental changes in vast areas in Bangladesh and different states of India.

He also said that the construction of the dam when completed in 2012, it would kill the Meghna River and for this reason it will bring major disaster for Bangladesh.

Motorcycle assembling to be developed

http://www.thedailystar.net/newDesign/news-details.php?nid=88260

Motorcycle assembling to be developed
Says minister
Unb, Dhaka

Leaders of the International Business Forum of Bangladesh (IBFB) yesterday put forward a set of recommendations for the development of motorcycle-assembling sector.

They sought tax rebate for importing raw materials used to manufacture spare parts for motorcycles, formation of a committee to monitor the procedures of raw materials import and tax holiday for manufacturing motorcycles.

The recommendations came when an IBFB delegation met Commerce Minister Faruk Khan at his office. IBFB President Mahmudul Islam Chowdhury led the six-member delegation.

The minister assured that all necessary steps would be taken for the development of motorcycle manufactures and its spare parts.

RAK Ceramics to float Tk30cr IPO

http://www.thedailystar.net/newDesign/news-details.php?nid=88244

RAK Ceramics to float Tk30cr IPO
Star Business Report

RAK Ceramics (Bangladesh) Pvt Ltd, a Bangladesh-UAE joint venture, will float Tk 30 crore worth primary shares through an initial public offering (IPO).

The tiles and sanitary-ware manufacturing company will be the first to use the book-building method to discover each share price.

RAK has appointed IDLC Finance Ltd and Equity Partner Ltd as issue managers.

“We signed an agreement today [yesterday] with RAK to this effect,” said a senior official of IDLC Finance.

Although two institutions will manage the issue, IDLC will be the lead issue manager, he said.

The existing paid up capital of RAK is Tk 65 crore, which will be increased to Tk 130 crore soon.

Presently, foreign entrepreneurs own 90 percent of the company’s stake, while local entrepreneurs own the remaining 10 percent. However, local ownership will become 20 percent after the IPO.

A delegation of RAK, led by Managing Director Ekramuzzaman, visited the Dhaka Stock Exchange yesterday.

RAK started business in Bangladesh in 2001. Presently, the company holds 80 percent market share in the sanitary ware market and 35 percent in the ceramics market.

Agro-processed food exporters expand market to Africa, US

http://www.thefinancialexpress-bd.com/2009/05/14/66443.html

Agro-processed food exporters expand market to Africa, US

Mohammad Jubair Hasan

Exporters of US$ 250 million agro-processed foods said they are expanding their market to African countries and the United States at a time when the global economic recession is about to strike the sector.

Many of them have recently started exporting various agro-processed items to the African countries, like Uganda, Ethiopia, Ghana, Sudan, Benin, Sierra Leone, Zambia, Niger, Mauritania and South Africa tapping the huge demand there for the products.

The business begun primarily targeting the Bangladeshi diaspora, but it spread rapidly to the local communities due to the agro-processed foods lower price tags.

The country has also been exporting its products like juices, soft drinks, spices, pickles, chips, confectioneries, frozen vegetables and various dry and frozen snacks to various European countries, including United Kingdom, Italy, Germany, Spain and the Gulf countries.

According to Export Promotion Bureau of Bangladesh (EPB) statistics, the export growth of agro-processed foods rose by 26.19 per cent in the July-March period of the ongoing fiscal year (FY) compared to the same period of the last FY.

In July-March period of the FY (2008-09), processed food exporters fetched $ 34.26 million, up from $ 27.15 million in the same period of the previous FY, the statistics said.

Pran Foods Ltd, the country’s largest exporter, at first started exporting agro-processed items to Assam, a northern-eastern state of India, from 2002.

“We’ve started exporting such products to 37 African countries as we got positive response from the importers,” Mr Mizan, chief of export division of Pran Foods Ltd, said.

Pran exported products worth Tk 220 million in April and has set a target of exporting Tk 300 million in May. “We are very much hopeful that we’ll reach the target,” he said.

Other exporters like BD Foods, Eurasia, Square Consumers and ACI are also planning market expansion in view of the ongoing global financial meltdown. These manufacturers are exporting around 25 per cent of their total production after meeting the domestic market demands.

An official of Al Amin group said they have recently started exporting biscuits to the United States in limited consignments.

Khorshid Ahmed Farhad, export manager of Square Consumers, said they are performing well in the North American countries, including the USA, and European countries just after entering the markets.

He said they exported products of Radhuni and Ruchi brands to only four countries three years ago and now they are exporting to 21 countries. “Our market is expanding to more countries in the North American region,” he added.

Islami Bank will start lending to migrant families

http://www.thefinancialexpress-bd.com/2009/05/13/66358.html

Islami Bank will start lending to migrant families

FE Report

Islami Bank Bangladesh Ltd. (IBBL) will start lending migrant families and returned migrants to tap the potentials of investing the multi-billion dollars of remittance flowing into Bangladesh, officials said Monday.

The country’s biggest private bank, which handled US$1.26 billion remittances in 2008 financial year, will also provide advisory services and entrepreneurship training to potential migrant investors, they said.

“We’ve already opened 10 SME (small and medium enterprises) centres across the country to facilitate investments by migrants and their family members,” a bank official said.

He added, “For us, it is an untapped opportunity. But it is crucial for us to pave the way for their safe investments. I think, we are well-placed to cater to the financing needs of family members of migrants or a returned migrant.”

IBBL accounted for nearly 23 per cent of the total annual remittances that came in trickles in the country.

Officials said the bank, which follows Islamic sharia laws, will be delivering remittances as well as loans for any potential investor with a broader goal of ensuring “productive use” of remittances.

The step is part of a Bangladesh Bank plan to foster investments by individuals linked to overseas migration, thus giving a boost to the rural economy.

Central bank officials involved said already six non-government organisations have started lending out to migrant families located in 14 districts under a project, funded by the UK government.

Bangladesh Bank officials said microfinanciers have already the skilled staff and physical presence in communities through their microenterprise lending experience. Shakti Foundation, Uddipon, ASPADA and SSS are involved in the project.

Led by the central bank, the project will initially be delivered to nearly 2000 migrant families in over a dozen districts such as Dhaka, Chittagong, Noakhali and Munshiganj within this year.

Bangladesh chapter of International Alternative Financial Institutions (INAFI) is implementing the project, partly funded by the Remittance Payment and Partnership (RPP) project.

RPP officials said a number of microlenders have developed capacity to provide services to entrepreneurs including the provision of loans under the microfinance programme.

Microcredit loan sizes tend to be between Tk 5000 and Tk 30,000; while small enterprise loans vary from Tk 30,000 to Tk 300,000.

They said that there are a large number of families where at least one member is working abroad in migrant-populated areas.

“Many families have used their savings or mortgaged or sold land to enable the family members to migrate. And money sent home by them is built up into a substantial amount, typically between Tk 200,000 and Tk 1.0 million. But they find no effective channel to invest,” said Robert Smith, a project official, in a recent interview.

“So this programme will be of critical importance to those who want to see their hard-earned money find avenues of investment,” he added.

Last year, Bangladesh received US$ 9.0 billion in remittances, boosted by record 875,000 overseas jobs.

The country became top 10 remittance recipient nation in the developing world, according to the World Bank.

Streel Industry: Steady demands nourish robust growth

http://www.newagebd.com/2009/may/12/busi.html#1

STEEL INDUSTRY
Steady demands nourish robust growth

The file photo shows workers busy at Bangladesh Steel Re-rolling Mills that produces high-grade steel.

Shakhawat Hossain

The country’s steel industry has been getting continuous investment boom due to steady demands.

Steel manufacturers see no major negative impact on their industry as they believe the country’s economy will keep its impressive growth despite the global financial recession.

They said the country with nearly six per cent growth in the last three years provides enough clues to consume higher production of mild steel rod to be generated by the big players with their proposed new investments.

‘The rod industry will not face major problem due to growing investment in the sector,’ said Bangladesh Steel Re-rolling Mills chairman Ali Hossain Akbar Ali.

‘Chance is slim even for the small players to become sick as the growing consumption rate of steel will remain in the coming years despite global financial recession,’ he told New Age.

BSRM, producer of high-grade steel, makes up more than 25 per cent of the total demand.

It is now on trial production in its newly installed 3,00,000-tonne plant, set up at a cost of over Tk 3.5 billion. It has also unveiled plans to invest another Tk 500 crore to raise its capacity to around one million tonnes within the next five years.

Following the footstep of the company, Kabir Steel and Re-rolling Mills is setting up a 3,00,000-tonne mild steel rod plant in Chittagong.

KSRM announcement came just a month after the country’s largest conglomerate, Abul Khayer Group, formally entered the sector, unveiling a Tk 700 crore investment for an 8,00,000-tonne plant.

Bashundhara Group, the realtor-turned-tissue to paper giant, also expressed its intention to set up an integrated steel plant.

Another Chittagong based mill — Ratanpur Steels and Re-rolling Mills — has said it has started marketing 75-grade mild steel rod since late last year from its Tk 200 crore state-of-the-art steel factory.

Trade experts and bankers, however, expressed concern that the latest investment boom in rod, a key construction component, will outpace the country’s annual demand for rod and might result in investment glut.

Dismissing such apprehension Akbar Ali said the country’s economic growth was good enough to consume the new and higher steel production that even raised no fear even for the existence of small players of the market.

He, however, foresees an intense competition in future due to possible price war which will eventually benefit the consumers.

Sheikh Masudul Alam, former general secretary of the Bangladesh Re-Rolling Mills Association, said he did not see any problem in new investment for the small players who were dominating the market with more than 70 per cent share.

‘The consumption of rod will be double in near future which will allow new investors sufficient breathing space,’ he said.

Sensing a fierce competition in the future rod market the small players are re-fixing their strategies. Many of them are adopting technology to produce high-grade rod, he added.

The country’s fast growing construction industry uses nearly 25 lakh tonnes of rods every year, the market price of which is Tk 1,000 crore.

More than 200 re-rolling and steel mills are producing steel products by using imported and locally available ship scraps. Only a few steel factories use imported billet to produce high quality mild steel rod.