Bashundhara Group to set up Tk 25b integrated steel plant
Jasim Uddin Haroon
A local company Tuesday disclosed that it will set up the country’s first ever integrated steel plant at a cost of around Tk 25 billion to cater to the domestic demand for steel products.
The Bashundhara Group said it will produce steel products from the proposed integrated plant by using the basic raw material- iron ore.
Currently, over 200 re-rolling and steel mills in the country 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.
“We have taken up the project of an integrated steel plant as the steel products produced in it would be cheaper and of international standard,” Serazul Islam, chief coordinator of Bashundhara Basic Integrated Steels said.
He also said the proposed plant will produce initially 1.0 million tonnes of steel products a year with an option of future expansion.
Bashudhara officials said they will start the civil works for the plant shortly at Anowara in Chittagong. The plant will be set on 300 acres of lands.
The project coordinator said Bashundhara will seek international financing for the project besides local commercial banks.
Bashundhara officials said they will produce different kinds of steel products to be used in structural engineering applications, maritime purposes, automobiles and general industrial purposes.
Md Jahangir Alam, a tremor expert, told the FE: “The quality of steel depends on its raw materials. Steels produced by iron ores are much more qualitative than the other steel products.”
“The demand for steel product produced from ores is rising in rich nations. Even, neighbouring India is also using this kind of steel,” Jahangir added.
Bangladesh’s steel market is estimated to be about 2.0 million tonnes a year.