Sea Resources signs joint venture with Cosmos Trawl

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Sea Resources signs joint venture with Cosmos Trawl

A Rouf Chowdhury (left), managing director of Sea Resources Ltd, and Einar Hebogård Jensen (middle), ambassador of Denmark, exchange documents after signing a tripartite deal in Dhaka yesterday. Sea Resources and Danish fishing gear company Cosmos Trawl will set up a joint venture company supported by Danida. Amanullah Chowdhury (background, second from left), joint managing director of Sea Resources, and Georg Jensen (second from right), managing director, and Lars Jensen (extreme right), deputy director of Cosmos, are also seen. Photo: Sea Resources

Star Business Desk

Sea Resources Ltd and Danish fishing gear company Cosmos Trawl A/S have signed an agreement to set up a netloft joint venture company. The deal marks the third phase of a business-to-business project, supported by Danida.

After one-year trial partnership, the two companies will step into the joint venture, named SRL-Cosmos Trawl Ltd, according to a joint statement released yesterday.

The new company will be based at Ichhanagar/Sardarghat in Chittagong, headed by Lars Jensen of Cosmos as managing director.

A Rouf Chowdhury will be the chairman of the joint venture.

Eirikur H Sigurgeirsson, Cosmos chief technical adviser, who will be stationed in Chittagong from January 2010, will look after day-to-day affairs.

Under the deal, the construction of a new 1,500sqm netloft will start soon. “Meantime, activities will continue from Sea Resources’ current operation alongside Fishers Shipyard,” the statement said.

The products will range from traditional fishing gear to modern and more efficient alternatives such as Cosmos semi-pelagic trawls, high-opening bottom trawls, wide-bodied and multi-rig bottom shrimp trawls and larger mid-water trawls and multi-purpose purse seines.

The joint venture will make import substitutes and open a one-stop shop where all equipment and accessories for modern fishing will be available.

“The new netloft will be state-of-the-art, with all kinds of helping equipment, to improve working conditions and efficiency,” the statement said.

“In addition, all employees will undergo training by Cosmos CTA in modern fishing gear technology, supported by a two-year net maker course developed by the International School of Commercial Fishing Gear Technology in Iceland.”

This will replace fishing method with modern technology transfer.

A general consultancy service for fishing operation will also be offered to all operators, the statement added. Cosmos Trawl is part of the international Hampidjan Group.

“Once the new netloft is fully operational, the joint venture will expand production and service towards regional fishing nations to secure a new stronghold in Asia,” the statement said.

Cosmos Trawl is recognised as Denmark’s largest and oldest net maker company, with large production facilities in both Hirtshals and Skagen, according to the company’s website.

Products by Cosmos Trawl are sold mainly in Scandinavia and the North Atlantic, but the company has clients in Asia, South America and the Far East of Russia.

Govt to set up `Economic Zone’ in Sylhet: PM

http://www.bssnews.net/newsDetails.php?cat=8&id=70287&date=2009-11-11

Govt to set up `Economic Zone’ in Sylhet: PM

DAHAKA,Bangladesh, Nov 11 (BSS) – Prime Minister Sheikh Hasina today said her government has taken initiatives to set up a special `Economic Zone’ in Sylhet region for further expanding the country’s economy.

She urged the Bangladeshi expatriates for investing more in different sectors here as a congenial atmosphere for foreign investment is prevailing in the country.

Describing the expatriates as ambassadors of Bangladesh, Sheikh Hasina called upon them to project the positive image of
the country abroad.

She made this call while an 11-member delegation of British Bangladesh Chambers of Commerce (BBCC) headed by its chairman Shahagir Bakth called on her at her official residence here today.

Prime Minister’s deputy press secretary Nazrul Islam briefed the reporters after the meeting.

The Prime Minister urged the foreign investors to invest more in the sectors of fish processing, food processing, tea industry, IT and other production-oriented fields in Sylhet area.

A `Road Shaw’ scheduled to be held in London on December next would build a positive image of Bangladesh abroad, she informed the delegation.

Mentioning her government’s plan to modernize the Sylhet Air Port, Sheikh Hasina said a refueling system would be introduced there so that International flights can fly and land in this air port directly.

British High Commissioner in Dhaka Stephen Evans, Prime Minister’s Principal Secretary MA Karim and Ambassador Zia Uddin, among others, were present at the meeting.

BTSS to produce low-cost phone-mobile sets, laptops

http://nation.ittefaq.com/issues/2009/11/09/news0007.htm

BTSS to produce low-cost phone-mobile sets, laptops

Rafiqul Islam Azad

The government has decided to produce low-cost land phone and mobile phone sets, laptop and different telephone tools and machinery in the country.

Under the imitative, Bangladesh Telephone Shilpa Sangstha (BTSS) has already floated an international tender to procure necessary technology and equipment from abroad, according to sources in the Ministry of Post and Telecommunications.

The state-run company would be the first in Bangladesh to manufacture and market cellular phones early next year and in the process reduce dependence on import in the fast growing telecom sector, a well placed official source said. He said the BTSS mobile phone was expected to be available in the market by February next.

“The price range of the hand-sets will be between Tk 1,500 and Tk 10,000, depending on their options and features,” said the official.

According to the official a tender in this regard has been floated on November 1 and tender documents will be scrutinised on November 15, the source said.

With the implementation of the project, huge foreign exchange will be saved and employment opportunity will be created, he said.

The BTSS would be able to produce modern land phone and mobile phone sets, laptop and different telephone accessories adding more technologies and equipment with the existing one as “There is trained manpower and necessary infrastructure with the BTSS,” the official said.

Earlier, following a meeting of the Parliamentary Standing Committee on the Ministry of Post and Telecommunication, Hasanul Haque Inu, chairman of the committee told journalists that the government is also planning to produce low-cost laptop at the BTSS factory in Tongi.

He said the government would try to reduce technological discrimination by providing tele-equipment to the people at affordable prices in line with the government’s Vision 2021 for Digital Bangladesh.

The production of the BTSS was stopped following change over of Ershad government due to mismanagements, lack of planning, indecision and corruption. Earlier, it produced different telecommunication machinery including telephone set, EMD switching, DP, pole, cabinet and joint materials.

Record shows that since establishment the BTSS supplied about 3,00,000 EMD switching, 5,00,000 telephone sets, 655 trunk exchanges, 403 analogue PABX, 7 digital exchanges, installed mobile exchange for important institutions in public and private sectors.

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.

Govt sets limit on foreigners in private industrial parks

http://www.thefinancialexpress-bd.com/2009/11/08/83739.html

Govt sets limit on foreigners in private industrial parks

Doulot Akter Mala

The government has imposed curbs on the number of foreigners a company can employ in a private export processing zone (PEPZ) to ensure better opportunities for local managers and experts, according to a newly framed policy.

A company shall keep the number of foreigners to a maximum five per cent of its total workforce and employ them only in technical and senior management jobs, the policy approved last month said.

The restrictions have been imposed as the country’s first private industrial park, the Korean Export Processing Zone (KEPZ), is set to start operation on a 2500 acres of land in Chittagong early next year.

The KEPZ has said it would create more than a hundred thousands jobs, with most of the investment coming from abroad. Some local conglomerates have also lined up to set up private EPZs to woo foreign investment.

The board of governors of privte export processing zones (PEPZ) okayed the policy in a bid to forestall moves by any company to hire excess number of foreigners at the expense of local workers.

“All entrepreneurs and investors will have to follow the government guidelines while employing foreign nationals in their companies,” said an order issued by Dr. Md. Nununabi Mridha, director general of PEPZ executive cell and secretary of PEPZ board of governors.

The policy has been framed in line with the PEPZ Act, 1996, the order said.

“Employment of foreign nationals in PEPZ enterprises shall be restricted only to technical people to posts for which no local expertise are available,” the policy said.

The new policy allows a limited number of appointments of foreigners at top management positions, especially those who will take policy decisions of the company or look after its overall management.

Investors will, however, have to arrange adequate training programme for local managers and experts so that they can replace the foreigners within a short period of time, the policy said.

The new policy has also pre-emptively curbed any move by the companies to pay poor salaries to Bangladeshi technical hands or top managers.

“Employment and other service conditions of Bangladeshi nationals should normally be the same as those of the foreign employees of equal status with the exception that the latter may be allowed ‘overseas allowance’ not exceeding one-third of their salaries,” the policy said.

Investors will have to take prior permission from the PEPZ executive cell before employing foreign nationals, whether in a salaried positions or on commission basis, it said.

For existing foreign employees in the PEPZ, investors have to take permission for renewal or extension of service contracts, it added.

Investors will have to take clearances from the executive cell of the PEPZ for extension of visas and remittance of salary, the policy said.

All enterprises in the PEPZ which employ foreign nationals will have to submit yearly personnel return of their expat workers to the PEPZ executive cell, furnishing information on nationality, period of employment, salaries, allowances and other facilities, the policy said.

Private EPZs policy framed

http://www.thefinancialexpress-bd.com/2009/11/04/83373.html

Private EPZs policy framed
Investment in 14 industrial categories allowed

Doulot Akter Mala

The government has framed a policy for setting up new plants in the private export processing zones (EPZs) allowing investment in 14 categories of industries, including pharmaceutical, electrical, leather and backward linkage units for production of textiles.

Private EPZ board of governors recently approved the policy with the guidelines for new investors and companies.

The board of governors has framed rules for entrepreneurs to follow at the time of submitting application for investment in private EPZs.

There is an act called ‘The Bangladesh Private Export Processing Zones’, framed in 1996. But the act does not have any specific policy or rules for investors to set up industries.

Officials said under the policy the intending investors have to furnish some necessary information, including time for starting and completion of investment and feasibly study of the respective industry.

The industries include electrical and electronics items, software development, IT, scientific instruments and precision tools, jewelry, engineering products and equipment, leather products and shoes, bags, jackets etc, sports goods and toy, footwear, backward linkage for textile, pharmaceutical products, agro-based industries, organic fertiliser production, garden and firm equipment, ceramic, agro construction material and agro port related services and business.

Investors, willing to set up other category of industries, will have to take prior approval from the board of governors, the policy said.

However, the policy has restricted setting up of four types of industries that include arms and other military equipment and machinery, nuclear power, and security printing.

There will be a space for central effluent treatment plant (ETP). All large industries must have separate ETP that will be connected with the central ETP, the policy said.

The private EPZ policy for establishing industries incorporated some rules such as taking environmental clearance certificate, setting up of waste disposal plant etc., which will protect environment from industrial pollution.

EPZ authority can lease out land to the investors for 30 years, which will be renewable, the policy said.

Other rules of the policy include sufficient measures against fire incidence and hostels for women.

Currently, there are eight export processing zones in the country. Of them, Korean EPZ (KEPZ) is the largest private EPZ in the country.

German team finds country ideal production base

http://www.thefinancialexpress-bd.com/2009/10/29/82871.html

German team finds country ideal production base

FE Report

Bangladesh can be an ideal production base for shipping goods to the South Asian markets, if bottlenecks like nagging power crisis and feeble transport system are removed, a German businessman said Wednesday.

Peter Clasen, head of the visiting German delegation, said German entrepreneurs are willing to set up manufacturing plants in the country.

“As a production base, Bangladesh will meet the demands of the South Asian Association for Regional Cooperation (SAARC) countries,” he said at a press conference jointly organised by the German Embassy and Bangladesh-German Chamber of Commerce and Industry (BGCCI) in the capital.

Mr Clasen, who is heading a 15-member business delegation of OAV-German Asia-Pacific Business Association, said Bangladesh’s economy is suffering a lot due to power crisis and feeble transport system.

“Regular supply of power and improved infrastructure are the keys to foster economic growth and Bangladesh has to remove these bottlenecks on an urgent basis.”

“You need to have ideal business environment. Then you will be able to compete with your competitors,” said Mr Clasen, who owns Wilhelm G Clasen Company.

He said the country’s policy on power was not ‘clear-cut,’ as no concrete attempts were made to generate electricity in the last six or seven years. “Nobody will be interested to invest in Bangladesh if the crisis persists.”

Mr Clasen said German businessmen are keen to help Bangladesh in the energy sector especially in harvesting solar energy. “Germans have solutions and technical know-how to help the country solve the power crisis.”

Many German firms want to set up manufacturing plants in Bangladesh and the process to set up a plant to manufacture low-cost energy saving bulbs is continuing, the German entrepreneur said.

“The business delegation is here to assess the country’s economic situation and will report back home about the priority sectors and business opportunities in Bangladesh.”

He said the country’s asset is its skilled workforce. “We are planning to give them vocational training. The German education system will also be very helpful.”

German Ambassador Holger Michael said the delegation during the meeting with Prime Minister Sheikh Hasina discussed shipbuilding, use of inland waterways, solar energy and many other issues.

German investors to set up energy-efficient bulb plant

http://www.newagebd.com/2009/oct/29/busi.html#1

German investors to set up energy-efficient bulb plant
Staff Correspondent

The German investors have almost finalised an investment project jointly with a local company to produce energy efficient bulbs targeting the whole South Asian market.

This was disclosed by visiting Germen business delegation chief Peter Clasen at a press conference in a city hotel.

Clasen is leading more than 20 member team on a week long visit in the capital to explore the business opportunities in the country, which has plenty of cheap labours, but lacked adequate power and transport logistics to attract large scales foreign direct investments.

Despite the disadvantages two other investment projects were in pile line, he added without disclosing the type of projects.

He also did not disclose the amount of foreign direct investment in connection with these three projects.

He, however, hoped that successful implementation of the projects especially the first one, which was targeting to make Bangladesh as energy efficient bulb manufacturing hub in South Asia, would open the floodgate of German investments.

Clasen who has high opinions about the country’s century old ship building tradition and craftsmanship of local carpenters observed that power shortage and transport logistics were bottlenecks in attracting big foreign investments.

He also observed that German energy giants would not feel encourage to invest in power sector in Bangladesh unless the government formulated long term policies on power sector with promise of consistency.

He termed that the existing energy policy was ‘obscure’. On open pit mining in the country’s potential coal reserve in Phulbari, Clasen said it was linked with dislocation of huge population.

German Ambassador Holger Michael who attended the press conference hoped that the present government would be successful to implement the ‘charter of change’ to overcome the bottlenecks of power and transportation.

He pointed out that maintaining ‘secularisms’ and proper function of parliament by participants of ‘all political parties’ representatives would be the other key positive signals to the foreign investors.

He expressed his dissatisfaction with the traffic congestion in Dhaka and major highways saying that it was leading to waste substantial time of every day business hours.

Bangladesh German Chamber of Commerce and Industry arranged the programme making visit of high profile German delegation known as OAV, which looks after the Asia Pacific region.

BGCC president Saiful Islam said that the OAV would make a comparative study on the country’s business opportunity with Vietnam on returning home.

He hoped that many positive things would come up in that study as Bangladesh was to spend $60 million to develop its inlands waterways in the current fiscal year which was only $2 million in the last fiscal year.

Besides, the inland container terminal adjacent to the capital was to be readied in the next year to help addressing transportation problem of export and import containers between Chittagong sea port and Dhaka, he said.

R-pac Bangladesh Packaging launches Adamjee EPZ plant

http://www.newagebd.com/2009/oct/29/busi.html#16

R-pac Bangladesh Packaging launches Adamjee EPZ plant
Business Desk

R-pac Bangladesh Packaging Co Ltd recently opened its Adamjee EPZ Plant at a ceremony at the plant’s premises.

Michael Teitelbaum, president and chief executive officer of r-pac International Corp

USA, Matt M Matsuo, president and chief operating officer of r-pac International Group, Sakir Ozkan Torunlar, ambassador of Turkish embassy Dhaka, M Didier Diakite, information systems officer of US embassy Dhaka, and Moyezuddin, member investment and promotion of BEPZA, were present on the occasion, said a news release.

Michael Teitelbaum gave an outline of the plant and also the background of the r-pac International. He hoped that the facility of the company would attract other businesses to the zone.

Sakir Ozkan Torunlar gave an overview of the relationship between Turkey, USA and Bangladesh. Didier Diakite thanked Bangladesh government as well as that of Turkey.

Moyezuddin also spoke on the occasion. Senior officials of the company were also present in the programme.

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

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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.

Osram makes a comeback

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Osram makes a comeback

Md Hasan

German lighting products maker Osram will restore operations in Bangladesh, with plans to produce energy-saving lights locally.

The global-giant light producer, which earlier marketed its products through its parent company, Siemens, now has appointed a local representative, IlluminateBD, to sell its products in Bangladesh.

In addition to selling the latest in lighting innovations by Osram, IlluminateBD also plans to provide consultancy services to the growing energy-saving lights market, like lighting in interior design, saving energy and maintenance.

“We acquired a site in Tejgaon industrial area to manufacture at least 25 Osram items initially with German technology,” said Javed Ahamed Bhuyan, chief executive officer of IlluminateBD.

Presently, only five to seven Osram lamps are sold in the local market, while IlluminateBD plans to introduce 70 in the next few years. With a rapid growth in the number of local energy saving light producers, Osram’s market share was less than 10 percent until 2008.

Two local energy saving bulb assemblers — Bangladesh Lamps Ltd and Energypac Electronics Ltd — hold around 40 percent of the market share.

In Bangladesh, the campaign for energy saving lights began in the mid- 1990s. The campaign later gained a momentum when the government got involved.

Customers are encouraged to use these bulbs as it promises to save electricity by 80 percent. Demand for such bulbs nears 10 million pieces a year.

About 30 percent of electricity is used at household levels, consuming around 1,740 megawatt (MW) of electricity, against a production of 5,800 MW, as claimed by the government.

Energy saving light traders said if energy saving light usage covers all consumers, around 350 MW of power will be saved.

However, Bangladeshi market is still mostly reluctant to go for quality lighting products because of higher prices.

A good quality energy saving bulb costs between Tk 180 and Tk 1,000, depending on capacity, while a sub-standard bulb is selling at Tk 80 to Tk 200.

So, IlluminateBD plans to supply products focusing on the customers’ purchasing capacity.

“We will supply good quality products for the mass, but as affordability is a big factor here, price differentiation is required for rural and urban customers,” Bhuyan said.

As electrification is yet to spread to mass levels, there is a big untapped market for the energy saving lights.

Bhuyan said at first, building awareness is important for the country to make people go for efficient electricity use, as carbon credit issues are also involved.

He said if Bangladesh government initiates, Osram will come forward to obtain carbon credit against the growing use of energy saving lights.

Bangladesh is one of the signatories of the United Nation’s Kyoto Protocol, under which it can get compensation from developed nations by reducing carbon emission.

In 2008, Osram sales amounted to 4.6 billion euros.

Osram is one of the two largest lighting products manufacturers in the world and has 46 factories in 17 countries.

hasan@thedailystar.net

Local co to invest $3.960m in Iswardi EPZ

http://www.newagebd.com/2009/oct/08/busi.html#6

Local co to invest $3.960m in Iswardi EPZ
Business Desk

A Bangladeshi company will invest US$ 3.960 million in Iswardi Export Processing Zone to set up a chemicals limited, said a press release.

The 100 percent local owned company, German Euro chemicals limited, will produce chemicals for textile industries.

The company will also create employment opportunity for 121 Bangladeshi nationals.

An agreement, to this effect, was signed between the Bangladesh Export Processing Zones Authority and German Euro Chemicals Ltd in BEPZA complex on Wednesday.

Md Moyjuddin Ahmed, member (investment promotion), of BEPZA and Md Tarif Uddin, managing Director of German Euro chemicals Ltd, signed the agreement on behalf of their respective organisations.

Banks, bourses offer to support $5-$10b energy dev fund

http://www.newagebd.com/2009/oct/01/front.html#2

Banks, bourses offer to support $5-$10b energy dev fund
Staff Correspondent

The banking sector and the capital market have offered to chip in to mobilise resources for the proposed Power and Gas Development Fund worth up to $ 10 billion to help the country tide over the nagging energy crisis.

The offer was made at a meeting at the power and energy ministry on Wednesday where local and foreign commercial banks, financial institutions and Dhaka Stock Exchange assured of their support in building the fund having the size of between $5 billion and $10 billion to be used for intensifying gas exploration activities and setting up new power plants.

Representatives of the banks told the meeting that they had enough idle liquidity that could be injected into the fund while DSE assured they could help raise around Tk 20,000 crore from the capital market in next three to four years.

The meeting, attended by the adviser to the prime minister, Tawfiq-e-Elahi Chowdhury and state minister for power and energy Enamul Haque, decided to form a committee, headed by Bangladesh Bank deputy governor Ziaul Hasan Siddiqui to come up with recommendations for creating the proposed fund.

The committee will make recommendations on the structure of the fund and how and in what terms the banks and other institutions would participate in the project, officials present at the meeting said.

‘The committee will be formed shortly and it would be given a timeframe for submitting its report. After getting the report, the government will move for establishing the fund,’ a senior official of the ministry told New Age.

Energy and power secretaries, chairman of Securities and Exchange Commission, deputy governor of Bangladesh Bank, president of Dhaka Stock Exchange, managing directors of different public banks like Sonali, Janata and Agrani, representatives of private and foreign commercial banks like HSBC and CitiBank NA, Investment Corporation of Bangladesh and Infrastructure Development Company Limited were present at the meeting.

Tawfiq and Enamul apprised the meeting that the government wanted to form a dedicated fund for the development of power and energy sector to reduce dependence on the international lenders.

They said huge funds would be needed to implement the government’s goal to add around 7,000 MW of new electricity to national grid by 2014 and to explore and extract primary fuels like gas to run the plants.

The policymakers apprised the financiers that they intended to generate a fund of around $5 to $10 billion to strengthen activities in the power and energy sectors.

The bankers said they had enough liquidity which could be invested in the power and gas sectors.

The DSE president Rakibur Rahman said the capital market response to the shares of energy and power companies like Titas Gas and Desco showed that people had confidence in the sector.

‘So, I think around Tk 20000 crore could be raised through the capital market in next three to four years for the power and energy sectors,’ he said.

Enamul told reporters after the meeting that the government intended to form the fund as a long-term platform for development of the power and energy sectors.

Tawfiq said that both public and private sector power and energy projects would be financed from the proposed fund.