Economic Zones go into large-scale production this month

Infographic: TBS

Several economic zones in the country are gearing up to go into large-scale production this month, as 14 industrial plants, ready to enter full-fledged manufacturing, await official opening.

Prime Minister Sheikh Hasina will inaugurate the commercial operation of 14 industrial factories in five economic zones including the Bangabandhu Sheikh Mujib Shilpa Nagar, the country's largest, later this month.

The 14 factories are expected to draw an investment of $1,204 million, of which $875.86 million has already been invested, according to sources at the companies and Bangladesh Economic Zones Authority (Beza), which is working towards establishing 100 economic zones in the country by 2030.

These factories, spanning 191-acre area across the five economic zones, have opened up 9,256 employment positions and already employed 4,871 people.

Prime Minister Sheikh Hasina will also lay the foundation stones of 29 industrial plants, which are under construction in nine economic zones. Proposed investment in these factories is $2,532.73 million, of which $610 million has already been invested. These factories will create employment for 27,609 people once they go into full production.

Beza was established in 2010 to boost the country's economy through establishing dedicated economic zones, equipped with all investment opportunities. Since 2014, when the establishment of the zones began, this is the first time a number of factories are entering operation at the same time.

Beza Executive Chairman Shaikh Yusuf Harun told The Business Standard, "The prime minister has given us time on 26 October. We will have the event at eight venues. A total of 53 infrastructures, including industry and administrative facilities, will be inaugurated on the occasion of 50 years of independence."

These include two new economic zones – Cumilla Economic Zone and Purbagaon Economic Zone, he added.

"Beza provides one stop service to investors. We are getting a lot of response from investors. Investor demand is greater than the amount of land available in economic zones. For this, we are rapidly developing some more economic zones. We provide utility connections, development of communication systems and networking in the economic zones," he said.

Bangabandhu Sheikh Mujib Shilpa Nagar, one of the largest economic zones in South Asia, is being constructed in an area of ​​30,000 acres of land in Mirsarai and Sitakunda upazilas of Chattogram and Sonagazi upazila of Feni.

Of the 14 industrial plants, which will be inaugurated, 4 establishments are at the Bangabandhu Shilpa Nagar.

McDonald Steel Industries Ltd, one of these 14, produces prefabricated structural steel, used in steel bridges & steel high rise buildings, factories and power plants.

Nippon & McDonald Steel Industries Limited produces MS Plate manufacturing from imported steel, purlin, slitting sheets & coil.

Asian Paints Bangladesh Limited, which produces Paints and allied products, Emulsions, has invested $34 million in the economic zone.

Pragyan Kumar, chief executive officer of Asian Paints Global International said, "We have constructed a modern factory, where production has already started."

Samuda Construction Limited, manufacturer of phc pile, is constructing their factory on 4-acre land with an investment of $8.2 million.

Two factories of Meghna PVC, Sonargaon Solar Energy ltd will be opened at the Meghna Economic Zone near the Dhaka-Chattagram Highway in Narayanganj's Sonargaon.

Five factories – Meghna Foil Packaging Ltd, Meghna Bulk Bag ltd. Sakata inx (Bangladesh) Pvt.Ltd., Siegwerk Bangladesh Limited, TIC Industries Bangladesh Pty Limited – will be inaugurated at Meghna Industrial Economic Zone, another Meghna Group economic zone in the same area.  

Meghna PVC Limited has established their factory on 25-acre land where it is producing plastic raw material, Poly Vinyl Chloride (PVC) resin and Polyethylene Terephthalate (PET).

Suman Bhowmik, senior deputy general manager of Meghna Group of Industries, told The Business Standard, "We invested $293 million until march and 1900 people have been employed. Altogether $400 million will be invested here including the imports of some machinery."

He said there is a huge demand for plastic raw materials in the country, which previously depended totally on imports, and in the international market.

"The demand for PET resin in the country is two lakh tonnes per annum, while we have a production capacity of one lakh tonnes. The demand for PVC resin is above four lakh tonnes per year while we have a production capacity of 1.5 lakh tonnes," he said.

Sonargaon Solar Energy ltd, another Meghna Group company, is producing electricity with an investment of $6 million and a production capacity of 14.07 megawatt.

Australian company TIC Industries Bangladesh Pty Limited is producing plastic garment hangers, sizer and accessories while German Siegwerk Bangladesh Limited is manufacturing Printing Ink.

Two City Group company – City Seed Crushing Ind. Ltd. (Unit-2) and City Polymers Ltd – are operating at the City Economic Zone at Uttar Rupshi, Gandhabpur, Char Gandhabpur & Nayagaon Mouza in Rupgonj Upazila of Narayangonj.

City Seed Crushing Ind Ltd (Unit-2), with an investment of $397m, is manufacturing Soya Cake, Rape Seed Cake and Crude Edible Oil.

Double Glazing Limited at the Srihatta Economic Zone in Moulvibazar, is producing sound reducing and energy efficient UPVC Door & Window, said the company's Managing Director Moinul Islam.

Bashundhara Multi Steel Industries Ltd, one of 29 companies, which will lay their foundation stone, has already invested $465 million at the Bangabandhu Sheikh Mujib Shilpa Nagar. The company will produce Rebar, Rebar in Coil, Wire Rod, LRPC & Welding Electrode (Mig & Stick).

Towfique Hasan, executive director, Marketing and Business Development, Bashundhara Group, "We have already begun construction. We will construct a two-phase steel manufacturing plant."

Beza aims to establish economic zones in all potential areas in Bangladesh including backward and underdeveloped regions with a view to encouraging rapid economic development through increase and diversification of industry, employment, production and export.

Of the planned 100 economic zones, the government has approved 97 economic zones, 28 of which are currently under development. 

So far, 12 privately owned economic zones have received licences to operate and nearly $4 billion have been invested in these economic zones. 

The goal is to create employment for 10 million people directly as well as indirectly. It also expects to produce and export products worth $40 billion annually in and from these economic zones.

Investors can avail of tax holiday, duty-free imports of raw materials and machinery at the economic zones.