Danish study finds shipbuilding 15pc cheaper in Bangladesh

http://www.thefinancialexpress-bd.com/more.php?news_id=83951

Danish study finds shipbuilding 15pc cheaper in Bangladesh

FE Report

The cost of building an ocean-going ship in Bangladesh is around 15 per cent less than in any other competitor countries, thanks to the cheap labour here, a study of the Danish Embassy said Monday.

Though the low labour costs cannot stand alone to lower the manufacturing costs, the study said the country might not compete with the countries like China, South Korea, India, Vietnam etc already dominating the secondary chain-supply industry.

According to the Danish study, the existing average labour wage per hour in Bangladesh is around US dollar 1.5, compared to $ 3.0 in a Chinese shipyard, $ 8 in South Korea, $ 16 in Italy and $ 18 in the US.

Bangladesh can supply only 10 per cent of the components required for building an exportable ship, but its support to the domestic inland and coastal vessel manufacturing is around 40 per cent, most of which is believed to be coming from small and medium enterprises (SMEs).

Though the cost of labour in shipbuilding is typically around 20-30 per cent of the total ship manufacturing costs, the study says the value of the local items could easily be raised to 70 per cent.

The productivity rate of Bangladesh is 1.0 with the estimated relative labour rate at 0.5 while the ratio stands at 1: 1.2 in India, 1:1.5 in China, and 6:4 in South Korea.

The Danish Embassy prepared the study on Bangladesh Shipbuilding Sector: Challenges and Business Opportunities prior to the visit of a high profile Danish business delegation, mostly from their shipbuilding industry, to find out joint venture business opportunities in Bangladesh.

The delegation, which arrived here Sunday, met Bangladeshi businesspeople at a meeting, titled “Denmark-Bangladesh Match-making event” Monday.

The study praised the contribution of the private sector to the sale of international oceangoing ships, which fetched half a million US dollars. It said four shipyard companies have already earned the full capacity of building ships of international standard.

Of the 200 shipyards, the study put Ananda Shipyard, Western Marine, Khulna Shipyard, and Karnaphuly Shipyard in the A category. Besides, Highspeed Shipbuilding and Engineering, Dhaka Dockyard, Narayanganj Engineering, Dockyard and Engineering, Chittagong Dry Dock and Fishers Shipyard have all been placed in the B category, which means these will be ready for constructing oceangoing ships in a year or two.

The study putting other shipyard companies in C and D categories said the country has the potential to develop 18 backward linkage industries, which include ship out-fittings, safety accessories, marine lighting, maritime signs, symbols and posters, piston rings, switch gear, furniture, marine cables, anchor and chain, electrical and electronic items, and shipbuilding steel plate.

While inaugurating the event at a city hotel, Commerce Minister Faruk Khan made a clarion call to the investors to take into account the country’s labour class and environment to make the investment fruitful.

He also called upon them to find more and more investment avenues including dredging and said the government has already taken necessary steps to create an investment environment for creating job opportunities for the poor segment of the population.

Danish Ambassdor Einar H Jensen, who led the country’s ship building sector revival by making international standard sea vessels, said Bangladesh’s ocean going ships are now doing well.

He said under the Business2Bussiness programme, 70 Danish companies have joint ventures with Bangladesh, mostly in information and technology.

The function, moderated by the president of Bangladesh Enterprise Institute Farooq Sobhan, was also addressed by Capt ATM Kamal from the local ship

Walton eyes int’l market with high production

http://www.thefinancialexpress-bd.com/2009/11/08/83704.html

Walton eyes int’l market with high production

Walton Refrigerator. Source: http://www.waltonbd.com/

Mehdi Musharraf Bhuiyan

Local consumer electronics giant Walton has aimed at more than doubling its daily production of refrigerators by the end of this year as the company is looking to make its mark in the wider international market.

The wholly Bangladeshi owned company- which is a concern of the local R.B. Group, is planning to increase its daily production output of refrigerator to 2,500 from its present level of around 1000, the company authority said Saturday.

“With the Eid ul Azha in the offing, demand for refrigerators, which is our trademark item, is running high in the local market at the moment” a senior marketing official of Walton told FE.

“However, after the end of the Eid season, we would increase our daily production to 2,500 per day as we are eyeing a number of overseas markets for our export”, said Moudud Parvez Mamun, Marketing Manager of Walton.

The conglomerate says that recent years have seen a boom in sales of its locally manufactured refrigerators in the domestic market and currently a total of 11 various brands of Walton refrigerators are available in the local market.

“We already have talked with dealers from a total of 13 countries around the world and by next year we would begin to export refrigerators in Malaysia and Saudi Arabia” Mamun said, adding “Walton has already shipped a range of its refrigerators to Sudan”.

The company says that the lower price of its products would give them a competitive advantage over other international competitors in the overseas market.

In addition, Walton is also looking to gear up its production of locally manufactured motorcycles by more than three fold, which it has identified as another highly potential market both home and abroad.

“Currently we churn out around 300 motorcycles per day from our factory in Gazipur. But by the beginning of the next year, we aiming to increase it to almost a thousand”, Mamun said.

The Bangladeshi company has recently signed an agreement with the Malaysian auto manufacturer Ageth to set up an automobile plant in its factory premise.

“Now we are hoping to commence the establishment of the plant by December which would ultimately see us manufacturing private cars and other automobiles within the country”, Mamun added.

Apart from the manufacturing of refrigerators and motorcycles, the company also assembles television, washing machine, generator, battery and energy saving lights while in the next summer; it is also planning to market its locally manufactured air conditioners.

R.B. Group- to which Walton is a subsidiary, first started its journey in 1977. The company started manufacturing and assembling electronic products back in 1996 and thus has played a pioneering role in electronics manufacturing in the country.

Meghna Group to launch high-end bikes in Nov

http://www.thefinancialexpress-bd.com/2009/10/27/82644.html

Meghna Group to launch high-end bikes in Nov

Jasim Uddin Haroon

Meghna Group, one of the country’s largest bicycle manufacturers, Monday said it will launch production of high-end bikes from its new plant this November, company officials said.

The plant, which has been set up at Sreepur in Gazipur, will produce bikes that will be sold between US$ 150 and $250 each.

Currently, Bangladesh’s three leading bicycle manufacturers have been producing bikes priced between $80 and $100 each on an average.

“We’re planning to launch a trial operation soon and we expect to start shipment of the same by February next year,” Mizanur Rahman, chairman of the Meghna Group told the FE.

The plant will manufacture at least 10,000 pieces of bicycles each month employing over 400 workers.

Bangladesh is the fifth largest bicycle exporter in the world and nearly a dozen manufacturing units ship bicycles worth around US$ 100 million a year.

Currently, some of the world’s leading companies, including Raleigh, PCM and Motor and Sports of the UK and Aldi of Holland, Bacht-enkirch Interbike of Germany, M&F De Schee-maeker and Formula Cycling of Belgium are importing bicycles from Bangladesh.

Bangladesh manufactures mountain bikes, city bikes, free styles, trekking, folding, beach cruiser and kid bikes. Industry insiders said the country can export around 2.0 million pieces of bicycles a year.

Major (retd.) Halim Khan, executive director of the Meghna Group said that this plant will open a new era in export of high-end Bangladeshi bikes.

The UK is a big bicycle market worth 214 million euro a year.

Halim Khan said: “We’ve to manufacture high-end bikes to tap larger markets in Europe.”

Pragati to assemble Mitsubishi brand luxury jeep, car

http://www.theindependent-bd.com/details.php?nid=147146

Pragati to assemble Mitsubishi brand luxury jeep, car
BSS, CHITTAGONG

Oct 24 : Owning a new luxury car at an affordable price would no longer be a distant dream for a local buyer with modest income level as state-owned Pragati Industries Ltd (PIL) has taken an initiative to assemble Japanese vehicle manufacturing giant Mitsubishi build Pajero brand jeep and Sedan brand car in its factory.

PIL officials told the news agency that local buyers could purchase such internationally recognized brand superior cars at just half price compared current market rate one has to pay for an imported one.

Apart from helping to bring back past glory of PIL, countrys lone motor vehicle assembling enterprise and a subsidiary of Bangladesh Steel and Engineering Corporation (BSEC), the officials said local vehicle market would witness a revolutionary change if the visionary project is materialized successfully.

PIL officials said, necessary discussion between BSEC and the Mitsubishi company to this effect has been finalized and initial car assembling process would start after signing of an agreement within a month.

As per preliminary estimate, the General Manager (Marketing) of PIL Mustafizur Rahman said, local buyers can purchase a 2500 CC Pajero brand jeep at a cost of Taka 40-45 lakhs instead of current market price of an imported one at Taka 70-80 lakhs while a 1500 CC Sedan car at Taka 12-13 lakhs against Taka 22-24 lakhs for an imported one.

A 4-member team led by BSEC Chairman M Abu Hafiz visited Mitsubishi factory in Thailand in last month to witness for themselves the facility and other technological aspects of the enterprise and had necessary discussion with the officials there to gather knowledge on required technological support for the PIL factory to start assembling Pajero brand jeep and Sedan car.

Earlier, a Japanese team comprising of Mitsubishi company engineers while visiting the PIL factory in July last expressed their satisfaction after witnessing the overall capacity and work atmosphere here.

Managing Director of PIL Engineer Zahiruddin Chowdhury told BSS that bilateral discussion with Mitsubishi authority is at final stage and only the issue of fixing the price of their supplied vehicles parts and PIL assembled cars was still unresolved.

” I am hopeful of settling the issue by October 30 and then we could reach an agreement” Zahiruddin said adding that the PIL would able to provide newly assembled luxury cars to buyers at a price close to a reconditioned one.

He said, the Mitsubishi authority would carry out three times sample test for PIL assembled cars before issuing final clearance for their marketing in Bangladesh market to ensure properly the quality and standard of the products up to its original level.

After signing of agreement, at first, a Mitsubishi company expert team would assemble a car at PIL factory in presence of local engineers and then they would supervise assemble process to be done by local men. Finally, the Japanese experts would physically check a car to be assembled fully by local experts without their help and then the Mitsubishi authority would issue work order in favour of PIL for commercial production if the new product is proved up to the mark.

Sea Resources firms up foothold

http://www.thedailystar.net/newDesign/news-details.php?nid=110178

Sea Resources firms up foothold

People use modern equipment to fish in seawater. Sea Resources Group, a local sector leader, has flagged deals with two Danish companies to make fishing gear and hydraulic machinery in Bangladesh. Photo: Sea Resources

Sohel Parvez

Sea Resources Group has shored up its foothold by signing deals with two Danish companies to manufacture fishing gear and hydraulic machinery.

Officials of the leading deep-sea fishing entity said the twin deals would cut import-dependency and help the local company explore global markets.

One of the joint venture deals was with Cosmos Trawl, a Danish fishing gear maker. In line with the agreement, a state-of-the art unit will be set up to make net and trawl doors to meet rising demand by deep-sea fishing trawlers in Bangladesh and beyond.

To make hydraulic machinery in Bangladesh, Sea Resources has signed another agreement with AS-SCAN Hvide Sandem, also a Danish company.

“We are trying to sharpen our competitive edge,” said Amanullah Chowdhury, joint managing director of Sea Resources that boasts a 15-vessel fleet for deep-sea fishing.

In the sector, there are 140 trawlers officially permitted to go for deep-sea fishing. Usually, deep-sea fishing trawlers catch shrimp, pomfret, snapper and tongue sole in the Bay of Bengal — home to 490 species of fish belonging to 133 families. Of them, 65 species have commercial importance.

Sea Resources earns about $12 million in exports a year. Officials said most of the fishing gear used by trawlers is generally imported. Similarly, hydraulic equipment is also imported.

“The agreements will also allow us to use the know-how in making modern fishing gear such as customised net, trawl doors and hydraulic fishing equipment,” said Chowdhury.

He also said the joint venture would enable them to make modern fishing gear in Bangladesh at lower cost, giving it a competitive edge to explore business opportunities not only in Bangladesh but also in South and Southeast Asian regions.

“In future, we want to tap regional markets,” he said.

Supported by the Danish Business-to-Business (B2B) Programme under Danida, a pilot phase of commercial production of net is underway to establish a net loft on the bank of Karnaphuli river in Chittagong.

Chowdhury said the joint venture entity to be named SRL-Cosmos Ltd would start production of customised net and multi-flexible trawls by January.

The agreement with AS-SCAN Hvide Sandem on manufacturing machinery is also expected to facilitate local capacity in manufacturing hydraulic equipment such as net drum, pump, motor and steering gear.

The production unit will be set up on the premises of Sea Resources, one of the subsidiaries of Fishers Shipyard Ltd.

“Initially we hope to make hydraulic machinery for deep-sea fishing vessels. In the long run, we will be able to provide hydraulic equipment for the emerging shipbuilding industry,” he said.

Chowdhury hoped that initial investments for establishing the net loft and hydraulic machinery unit would stand somewhere between $25-30 million.

“After completion of these two projects, we will be able to improve our efficiency in deep-sea fishing and reduce our cost.”

sohel@thedailystar.net

Korean co to manufacture cars in Bangladesh

http://www.thefinancialexpress-bd.com/2009/10/14/81579.html

Korean co to manufacture cars in Bangladesh

Jasim Uddin Haroon

A South Korean automobile company unveiled a US$ 2.0 billion plan Monday to manufacture cars in Bangladesh aiming to grab the country’s fastest growing market and explore export abroad.

Tagaz Korea, established in 2006, has already purchased 350 acres of land at Bhairab in Kishoreganj to set up its second largest plant in Bangladesh, company officials said Monday.

“We want to start construction work at our site by the next six months and it will be completed within 24 months. We will then go for manufacturing cars,” Abdul Mannan Nasir, managing director of Cimillae Development Co, a concern of the Tagaz in Bangladesh, told the FE.

Officials at the Tagaz Korea, a Korea and Russia joint venture automaker, wants to manufacture cars in Bangladesh mainly because of its low labour cost and strategic location for export market.

Bangladesh is enjoying a special facility to European market under EBA (everything but arms) and labour is comparatively cheaper. Automobile industry is a semi-labour intensive industry.

Mr Nasir said Bangladeshi auto technicians, who are quick learners, have average wages between US$300-$400 a month, which is more than double in other developing nations.

He said: “A sedan costs US$ 10,000 in South Korea. But we can reduce the cost here by around $3000 due to cheap labour and other facilities existing in the country.”

He hinted that local buyers would get a sedan with 1500 cc engine capacity at Tk 700,000-Tk 800,000.

State-owned Pragati Industries Ltd has also taken a move to assemble Mitsubishi sedan by 2011.

Company officials said CCGI, a Korea-based leading funding agency, will invest in the Bangladesh plant.

Company officials said Bangladeshi partners will have 20 per cent stake in the joint venture.

Tagaz Korea, a comparatively new automobile maker, said around 30 South Korean companies will also set up their plants in Bangladesh to provide major raw materials for the plant.

Company sources said around 400 local companies will also be developed to supply different kinds of accessories for the plant.

Tagaz is currently rolling out over 500,000 cars from its Korea plant a year and it is mostly exported to European market. They are planning to manufacture at least 50,000 cars in Bangladesh’s plant a year.

Bangladesh’s car market has been growing steadily over the past few years mainly because of the credit facility. The average import of re-conditioned cars is around 30,000 a year.

Bangladesh to become carmaker

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Bangladesh to become carmaker
Star Business Report

Bangladesh is set to become an automaker by the next two years, as a South Korean investment company yesterday announced a plan to invest $2 billion for setting up a Korean brand car manufacturing plant in the country.

The proposed car unit is expected to go into production in 2012, targeting to make 50,000 Korean Tagaz brand cars a year, and sell those in both local and international markets.

The plant will also manufacture cars to be branded locally.

If the plant is set up in time, it will be the first-ever car making venture in Bangladesh.

Industries Minister Dilip Barua formally unveiled the $2 billion investment plan, and termed it as a good sign for Bangladesh amid a sluggish foreign investment flow.

Cimillae Development Co Ltd, the local agent of Korean investment company CCGI, will coordinate the investment implementation.

Abdul Mannan, managing director of Cimillae Development, said local customers will get a Tagaz brand new car at only Tk 7 lakh. The company has already acquired land at Bhairab in Narsingdi for the plant.

Mannan said the plant will require two years to be set up. As many as 15,000 jobs will be created to run the car manufacturing plant.

CCGI Chairman Lee Young Choung said his company has already decided to invest more in Bangladesh besides the car manufacturing plant. He said CCGI has plans to invest in 30 sectors in future.

Presently Japanese reconditioned cars dominate the Bangladesh market. Around 20,000 used cars are imported each year, while the number is 2,000 for brand new cars.

Some brand new carmakers like Ford have already initiated move to enhance their presence in Bangladesh.

Japanese Toyota still leads the market in both used and brand new car segments.

Local co to invest $3.3m in Ishwardi EPZ

http://www.newagebd.com/2009/oct/13/busi.html#7

Local co to invest $3.3m in Ishwardi EPZ
Business Desk

DOZ & Company Pvt Limited will set up an electrical and electronics light engineering industry in the Ishwardi Export Processing Zone.

The 100 per cent locally owned company will invest $3.325 million in setting up its unit and will produce electrical and electronic items. The company will also create employment opportunity for 522 workers, a news release said.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the company at BEPZA Complex in Dhaka on Sunday.

BEPZA member (investment promotion) Md Moyjuddin Ahmed and DOZ & Company director Md SK Rakib Hossain signed the agreement on behalf of their respective sides.

BEPZA executive chairman Brigadier General Jamil Ahmed Khan was present.

20 Danish shipbuilders to explore jt venture

http://www.thefinancialexpress-bd.com/2009/10/03/80560.html

20 Danish shipbuilders to explore jt venture

Fazlur Rahman

A delegation of more then 20 Danish companies will visit Bangladesh next month to explore possibilities for setting up joint-ventures in shipbuilding.

“The aim of the visit, which takes place from November 8 to 13, is to set-up joint ventures in shipbuilding between Danish and Bangladeshi companies, said Morten Siem Lynge, Business-to-Business coordinator of Danish Embassy in Dhaka Thursday.

The visit is taking place at a time when the country’s ocean-going shipbuilding industry has been hit by global recession as orders worth hundreds of millions of dollars have either been cancelled or put on hold.

“At the moment, more than 20 Danish companies have shown their interests to visit Bangladesh and look for local partners,” Morten told the FE in an interview.

“It is true that buyers are now taking less, cancelling orders or putting them on hold due to global recession. But things will change when the recession is over and Bangladesh has to be ready for that.”

He said ships have to be built in recession times, and Bangladesh can actually benefit from this.

“Bangladesh has done exceptionally well amid recession. It is still building new ships and the number of orders will certainly go up once the global economy recovers.”

Experts said the country has become a new destination for companies seeking to build small ocean-going vessels as traditional shipbuilding nations such as South Korea and China now focus on building large ships.

Even Vietnam, which is relatively new in shipbuilding, is no longer interested to build small ships weighing 4,000-25,000 tonnes, Morten said.

Denmark, which has long tradition in shipbuilding, is now less active in this area due to high production cost. However, a very large number of high quality component and service suppliers for shipbuilders are still very active in Denmark, Mr Morten said.

He said low labour cost, which is one of the cheapest in the world, has also made Bangladesh a new destination for companies seeking construction of small ocean-going vessels.

Danish companies are interested to build ships here because it is at least 15 per cent cheaper compared with other countries, he said adding Bangladesh is the cheapest place in the world for building new ships.

He said 55 per cent of the world’s ships below 20,000 dead weight tonne (DWT) are at least 20 years old and they have to be replaced sooner or later.

Morten said Bangladesh imports 90 per cent of the components needed to build ships. But the local companies can cut cost further and secure a more timely delivery of components if they manufacture components locally through joint venture with overseas companies.

“Many Danish companies, which manufacture components, are willing to go for joint venture in Bangladesh,” Morten said.

The shipbuilding sector, which is hailed as the next industry leader after garments with potentials to earn billions of dollars, will create jobs for thousands and help grow many other allied industries, he added.

Local shipbuilders have termed the upcoming visit of the Danish manufacturers as a positive news for the country’s nascent industry.

“This visit will broaden our business prospect,” said Sakhawat Hossain, managing director of Western Marine Shipyard, the country’s one of the largest shipbuilders.

He told the FE: “I think we have overcome the crisis, as it is evident from the interest shown by the global shipbuilders.”

“The demand for small sea-vessels has also increased due to the economic crisis, and we are ready to take this opportunity,” he added.

First ever joint venture to set up Hydrolic Machinery industry in country

http://nation.ittefaq.com/issues/2009/09/20/news0821.htm

First ever joint venture to set up Hydrolic Machinery industry in country

Business report

Fishers Shipyard, a sister concern of Sea Resources Group recently signed an agreement with Danish company AS-SCAN Hvide Sande.

Fishers Shipyard is a pioneer organisation for fishing in deep sea, has signed the agreement with the Hydrolic Machinery manufacturing organisation AS-SCAN Hvide Sande, first of its kind in Bangladesh to manufacture the world class standard Hydrolic machineries like; Pump, Motor, Vulb, Steering Gear, Net Drum, Anchor Winch, Ram, Crane etc.

Side by side manufacturing, the organisations will marketise the products in reasonable prices in local, regional and international markets in fishing trawlers and commercial river transports.

The industry will be set up at the yard of Fishers Shipyard at Ichanagar area, Karnaphuly in Chittagong.

Managing Director of Sea Reasources Group, Abdur Ruof Chowdhury and Managing Director of AS-SCAN Hvide Sande (Denmark), Karsten Olesen signed the agreement on behalf of their respective organisations at the headquarter of Sea Resources Group.

Sea Resources Group, Joint Managing Director, Amanullah Chowdhury, General Manager of Fishers Shipyard, SMA Hannan and Andersen Consult ApS from Lars Seaguard Anderson were also present on the occasion.

Local firm set to grab metro rail project

http://www.theindependent-bd.com/details.php?nid=142686

Local firm set to grab metro rail project
DEEPAK ACHARJEE

The government is planning to select a local company named Contech Limited, for constructing the proposed 52-kilometre underground metro rail (subway) system to reduce traffic congestion in the densely populated capital city.

The communications ministry is learnt to have prepared a proposal to select the local company for implementing the metro rail project. A proposal to this effect would be placed at the cabinet committee on economic affairs to be held on September 27, sources in the communications ministry said.

According to the sources, Contech Limited has submitted a proposal to the communications ministry to construct the subway in Dhaka city at a cost of Tk 5,200 crore.

The company said that the underground railway system in the city could be established in three years’ time. The system would have six routes covering almost every busy area of the city.

The communications secretary Md Muzammel Haque Khan has said that the communications ministry has enlisted the proposal of the company with the Bangladesh Private Sector Infrastructure Guidelines, as unsolicited proposal.

The ministry has informed the company that it has selected them as pre-qualified tenderers and asked them to attend in the final tender of constructing the metro rail, he added.

According to the proposal, the project will be implemented by the private sector on Build, Operate Transfer (BOT) basis under the supervision of Bangladesh Railway (BR).

The first route of the metro rail system would start from Gabtoli and end at Saidabad via IDB Bhaban and Mohakhali covering a length of 17 kilometres. The second route would be from Uttara to Mohakhali via airport and Banani.

The third route would run from Pallabi to IDB Bhaban, the fourth would be from Ring Road to Shahbagh Via Satmasjid Road and Jigatola. The fifth route would go from Saidabad to Tejgaon via Kamalapur and the sixth would be from Gulistan to Sadarghat.

It is learnt that, the company has got assurance from the donor agencies of a big chunk of money as soft loan.

A consortium of local banks would be approached for financing the rest of the money as commercial loan. If necessary, the company would also be able to collect money from the stock market by floating shares.

The proposed underground railway system could be established through cut and cover method without disturbing surface traffic on any major road. The fare on the subway would also be less than the fare of surface transport system.

Sale of Walton refrigerators up ahead of Eid

http://www.theindependent-bd.com/details.php?nid=141922

Sale of Walton refrigerators up ahead of Eid
ECONOMIC REPORTER

Walton showrooms all over the country are experiencing growing turnout of customers ahead of Eid-ul-Fitr, one of the year’s busiest shopping periods. Huge rush of buyers is being seen at the all showrooms of metropolitan cities, district and upazila towns.

Company sources said: “Walton refrigerators have created huge enthusiasm among local customers as they became aware of Walton brand high quality refrigerators, manufactured at Walton Hi-tech Industries in Gazipur, being exported abroad.

During a visit to the Bashundhara City Shopping Complex, the largest shopping centre in the country, people were seen returning home after buying Walton refrigerators.

Sabina Mallik, a customer in the city’s Kathalbagan area said she had bought an 8cft refrigerator at Tk 18,500. About why she chose to buy this brand of refrigerator, Sabina Mallik told the correspondent that she had discussed the matter with her relatives and all had advised her to buy a Walton brand refrigerator, says a press release.

Bashundhara City Shopping Complex’s Walton Showroom Manager Lutfor Rahman said: “A refrigerator is not a thing of luxury now. Due to the impact of globalisation and improved technology, it is now within the purchasing capacity of middle class and lower middle class. RB Group offers every one essential commodities at competitive rates. Walton refrigerator prices are 20-30 per cent lower compared to imported ones.”

He informed that a 10cft Walton refrigerator was being sold at Tk 20,500 while the same refrigerator of other companies was being sold at Tk 30,000 in local market. A 12cft Walton refrigerator was being sold at Tk 23,500 while the same refrigerator of other companies at Tk 35,000.

He claims that the company has set up a service centre at every showroom with a view to providing after sales service, which also attracts the customers.

Sirajul Islam, Additional Director of RB Group of Companies, about the product said, “The Group always has something innovative and new for its consumers.” imported one.

He claims that the company is committed to exchange any sold product if any major fault is seen within five years and to provide five years service after selling. Walton also gives customers a facility of supplying colour, door, handle, etc as per customers’ choice.

One of the main features of Walton brand refrigerators is 100 per cent copper condense as a result there is no problem within two years. Compressors of Walton refrigerators are imported from Malaysia whose gas charge continues at least 10 years, he also claims.

A senior official of RB Group said in foreign countries a customer buys a refrigerator for two or three years. Later, the customer changes the model.

Record rise in import of scrap-vessels

http://www.thefinancialexpress-bd.com/2009/09/13/78904.html

Record rise in import of scrap-vessels
No major impact on MS rod prices

Jasim Uddin Haroon

Import of scrap-ships doubled in the last fiscal year due to sharp fall in its prices in the international market boosting the supply of raw materials to the country’s steel sector.

Local importers purchased 2.2 million tonnes of old ships mostly big sized in 2008-09 fiscal against 0.97 million tonnes over the same period in 2007-08, according to statisitics.

“We’ve imported ships of over 2.2 million tonnes last year. This is a record in the history of Bangladesh’s ship-breaking industry,” Enamul Hoque, a senior consultant of Bangladesh Ship Breakers Association (BSBA) told the FE.

The number of ships imported during the last fiscal year was 193 against 120 in 2007-08, he said.

Currently, an old ship costs around US$300 a tonne in the international market, which was $750 before the recession hit the globe in 2008.

Mr Enamul said local importers have added 19 more shipyards taking the number to 69 to cope with the increased number of old ships being imported in the country.

“Our importers are beaching four to five ships each week and are finishing cutting the same number a week,” Zafar Ahmed, president of the BSBA told the FE.

Earlier, there were only 36 active ship breaking yards in Sitakundu, 20 kilometres north of the port city Chittagong, which dismantled 110 ships on an average every year.

“We now dismantle nearly 60 per cent of the ships sent to scrap-yards across the globe,” said Zafar Ahmed, a leading ship breaker.

India breaks around 1.5 million tonnes a year followed by China 1.3 million tonnes, Pakistan 1.0 million tonnes and Turkey around 0.60 million tonnes.

The country’s ship breakers offer at least 20 to 25 per cent more price than their competitors in India and Pakistan, making Bangladesh the preferred choice for the ‘burial ground’ of a large and medium sized ships.

Sitakundu of Chittagong has become world’s largest ship-breaking destination as Bangladeshi importers have alredy beaten their competitors in India and Pakistan to buy the highest number of scrap vessels sold in the international market.

Association officials said the country’s importers are now financially better off than many of their competitors in India, Pakistan and Turkey, enabling them to scour the world for any old ships up for sale anytime.

China, a large player in ship breaking industry, has now stopped buying scrap vessels because it already built up a buffer stock, they said.

The old ships are the main source of construction steel in Bangladesh. The country’s re-rolling mills melt it after dismantling in huge slabs of steel.

The ship scrap melts steel to make 40-grade mild steel (MS) rod which has a major market in the country’s steel sector.

The ship breakers supply around 80 per cent of the country’s annual steel rod demand, which is met from scrap ships.

Showkat Ali Chowdhury, who owns Namrin International, the country’s largest ship breaker, said the business grew tremendously in recent times as the demand for the steel rose sharply amid recovery in the construction industry.

“Importers are taking the adavantage of the sharp fall in its internaitonal prices,” he added.

However, there has not been any remarkable impact on the prices of MS rod at the retail level. The price of 40-grade MS rod which went up to Tk 45,000 a tonne last year is now hovering around Tk 40,000 a tonne.

Malaysian group intends to build car plant

http://www.thedailystar.net/newDesign/news-details.php?nid=103912

Malaysian group intends to build car plant
Star Business report

The Malaysian Agate group has expressed its interest to build a car plant in joint venture with local the Walton High Tech Industries, officials of both the sides disclosed it yesterday.

The group will also import Walton-made motorbike and freeze and market those in Malaysia and some other countries.

“Bangladesh is a big market for cars and other motorised vehicles. Production cost will be relatively cheaper because of huge surplus labours,” said Agate Group Managing Director Sultan Abdul Quadir at a press briefing at the Walton headquarters at Motijheel in Dhaka.

The group has also planned to invest in the country’s power sector and human resource development, Quadir said.

Agate’s proposals include setting up 1,000-megawatt power plant based on coal fired facilities, medical schools and other training facilities to create qualified nurses and other technicians and imparting training to the local people with a duration ranging from three months to three years for overseas job market.

In the field of international trade, the delegation on behalf of the Malaysian government expressed its desire to export 1.5 million tonnes of palm oil to Bangladesh.

Quadir expressed his interest during a meeting with Commerce Minister Faruk Khan at his office Sunday.

Agate Group operates duty free outlets to sell cigarettes, cosmetics, jewellery, leather goods, perfumes, fashion wear, watches, textiles and electrical goods in Malaysia. The company also operates colleges to provide courses in engineering, electronics and information technology.

It involves in software development for finger print identifications, general security systems and warfare related technological equipment.

The group has a coalmine in Indonesia and a 1,200-megawatt power plant in Gujarat in India.

Walton Directors Mahbubul Alam and Abul Bashar Howlader were present at the press conference.

Malaysia to import Walton refrigerators, motorcycles

http://www.theindependent-bd.com/details.php?nid=138955

Malaysia to import Walton refrigerators, motorcycles
Economic Reporter

R.B. Group of Companies Ltd, a leading electrical, electronics and automobile manufacturing and marketing company in Bangladesh, will export Walton brand refrigerators and motorcycles to technology-developed country Malaysia.

The local company recently signed an agreement in this regard with a famous Malaysian company- Aget Group- at its office at Menara Safun Tower in Kuala Lumpur.

Under the agreement, at the primary stage the Malaysian company will import one lakh refrigerators and 50,000 motorcycles every year. This has already created huge enthusiasm at home and some countries abroad.

Through its marketing channels, Aget Group will sell the imported Walton brand refrigerators and motorcycles to Indonesia, Singapore, Vietnam, Myanmar and other countries.

Walton Adviser Mizanur Rahman and founder and Chairman of Aget Group Dr. Sultan Abdul Kadir signed the agreement on behalf of their respective sides.

Walton Director (Finance) Abul Basar Howladar, Managing Director of Seven C Resources Matiur Rahman, Managing Director of Deen Metal Industries Ahmed Ali and General Manager of Aget Group Engineer King Lee were also present at the signing ceremony. At the signing ceremony, Dr. Sultan Abdul Kadir expressed his interest to invest in Bangladesh saying that Bangladesh can be prosperous because of her plenty of natural resources and cheap manpower.

He also pointed out that through the agreement the relationship between the two countries would increase in future and Bangladesh would get an opportunity to expand its market in the ASEAN region.

Walton Adviser Mijanur Rhaman said: “Walton refrigerators are being exported to South Africa, Australia and some other European countries. Walton now eyes ASEAN countries for doing good business.”

A RB Group official said, “The recent economic meltdown gives Walton a competitive edge as its production cost is relatively cheaper because of lower wages.”

“Many manufacturing plants in developed countries were shut down following the global meltdown. These countries are now looking for import from developing countries,” he said.

Headquartered in Kuala Lumpur, Aget Group is one of the world leaders in power production, infrastructure development, housing, flyover construction, steel industry and finance sector. It has largely investment in Indonesia, Singapore, India, Vietnam and Myanmar. The company has also showed its interest to invest in different sectors in Bangladesh under the arrangement of RB Group of Companies.