Local conglomerate Nitol-Niloy Group and the USA-based Kinematics Inc are all set to invest Tk140 crore to manufacture export-quality ceramic insulators in Sylhet's Chhatak.
To make this happen, Chief Executive Officer of Kinematics Abubaker Abdul Shakur Memon and Nitol Niloy Group Vice-Chairman Abdul Marib Ahmad inked a deal on Sunday.
Bangladesh Investment Development Authority Executive Chairman Md Sirazul Islam and Nitol Niloy Group Chairman Abdul Matlub Ahmad were present at the agreement signing event that took place at the BIDA office in the capital.
"When we got the foreign investment proposal, we first approached state-run Bangladesh Insulator and Sanitaryware Factory, but it was not interested anyhow. Later, we offered Nitol-Niloy to work with Kinematics and it came forward," Md Sirazul Islam said.
"Hopefully, the plant will be able to go into production within the next 8 months. It can also export insulators after meeting the local demand," he added.
A ceramic insulator is a non-conductive insulator made from red, brown, or white porous clay that provides a bridge between electronic components. It has high dielectric strength.
Some widely used insulators are pin insulator, disc insulator, reel insulator, shackle insulator, hollow core insulator, long rod insulator, lightning arresters insulator, isolators, air brake switch.
"Our factory will produce all types of insulators, for which we will need to collect some 3,000-5,000 tonnes of raw materials from home and abroad," Abubaker Abdul Shakur Memon said while adding that they have a plan to export insulators worth Tk200 crore annually to countries like Egypt, Kenya, Nigeria and Nepal.
"In the joint venture, our share is 49% while Kinematics Inc owns 51%," Nitol-Niloy Chairman Abdul Matlub Ahmad said.
The design of the factory has already been done. Construction work will start soon on the 12.5 acres of land at Chhatak, he added.