According to Mining News Pro -According to the latest reports, Japan`s Nippon Steel and Sumitomo Metal and Bangladesh`s McDonald Steel Building Products Ltd have come together to set up a steel plant in Bangladesh’s Mirsarai Economic Zone in Chattogram as import substitute plant.
The two companies have agreed to invest USD 59.19 million, to establish the plant and Bangladesh Economic Zones Authority (BEZA) has signed an agreement with the joint venture to lease out 100 acres of land in the economic zone for the plant.
As per the plan, factories, administrative building, warehouse, service area, water and waste management plant and other establishments will be set up in 60 acres of land while the remaining land will be used for dormitory, health facility, training centre and greenery.
With the planned investment, the joint venture company will set up a large-scale steel mill at Mirsarai Economic Zone and procure 50% of required raw materials from the local market. The development work of the plant is expected to start in December 2018 and is expected to be completed in two years and will create employment for about 2,500 people.
The venture plans to sell USD 13.67 million-worth steel products in the local market every year whereas about 20% of the total output will be exported to South Asian countries.
Mohammad Sarwar Kamal, MD of McDonald Steel, said “We will manufacture basic steel products like galvanised steel, steel sheets, and pre-fabricated steel.”
Acting Japan External Trade Organisation country representative Koga Taiki said that 269 Japanese companies had already made investments in Bangladesh and the volume of investment will also rise in future, he said.
McDonald Steel produces pre-fabricated structural steel. It imports quality products from Japan, Luxembourg, China and India. Nippon Steel is Japan’s integrated steelmaker and produces various types of steel products used for industrial machinery and equipment and exports them worldwide.