Steel and Iron Industry of Bangladesh

The steel sector is a highest investment sector in the world. The development of a country is considered by calculating the per capita steel consumption of that country. At present, the average per capita steel consumption in Bangladesh is 45 kg. In view of the growing economy, especially the infrastructural development of the government, it is expected that the demand will increase to more than 70 kg in the next two years. The iron industry has been growing in the country since 1990. In the nineties, entrepreneurs came forward to invest in the sector one by one. Then the raw material of the rod became easily available for the old iron of breaking ship. Although the initial three decades have been in the traditional way, the country's steel sector is growing by relying on private sector investment, diversifying products and transforming into production.

Top entrepreneurs of the country say that the production capacity is being increased in advance keeping in mind the future demand of steels inside Bangladesh. One by one new and high-powered specialized rods are being added to the list of products. For this, of course, industries have to face new challenges. Due to the COVID-19 epidemic, the factories have been closed for a long time and huge losses have been incurred. Entrepreneurs are worried about paying their employees and even keeping the business running. Even though the factories have been reopened, they have recently suffered the most due to the scarcity of melting scrap in the world market. However, after the disaster, the country's heavy industrial sector has now started to turn around.

According to the Steel Manufacturers Association and Entrepreneurs, even 10 years ago, the combined production of MS rods in the country was 2.5 million tons per year. At present, the average annual production and marketing is about 6 million tons according to the demand. However, the combined production capacity of steel (rod) has now been increased to 9 million tonnes due to factory expansion measures of several companies including GPH. The pace at which the capacity of the factory is being expanded will increase to 10 million MT in the next two years. And then the production of MS rod will release an average of 7 million tons per year. The total investment of entrepreneurs in this sector is about BDT 50 thousand crore. At present about three lac people are directly and indirectly involved. The main reason for the growth of the steel industry in the last few years is the implementation of mega projects in the public sector, development of economic zones, power plants, construction of houses in the villages. In this context, the entrepreneurs focus on increasing production by expanding modern technology and factories.

 

BSRM:

Speaking of the country's steel sector, the name BSRM comes first. The East Bengal Steel Re-rolling Mills, established in the Nasirabad industrial area of ​​Chittagong in 1952, was renamed Bangladesh Steel Rolling Mills or BSRM after independence. The first generation of the company was started by Akbar Ali Afrikawala. Later the current chairman of the group, Mr. Ali hossain son of founder Akbar Ali Afrikawala has been leading the company for almost 40 years. Changes in the quality of steel, including the manufacture of high-strength rods, have come about through his hands. There is no big or important project in the country where BSRM rods are not being used. The eight factories of BSRM Group now have an annual rod production capacity of 1.6 million tonnes and billet production capacity of 1.8 million tonnes. However, BSRM is moving ahead with the aim of increasing the combined production capacity to 4 million tonnes in both the cases. The company, which started about 68 years ago, is expanding its business using only its skills and experience in the steel sector. In 1983, BSRM started making quality products by bringing automatic machines from United Kingdom. The following year brought a variety of products to the sector with high-strength ‘cold-twist steel rods’. Then in 1987 BSRM took the first step to produce high quality 60 grade rods of international standard. Later, the Extreme 500W was launched in 2008. These 500W rods have more power than 60 grades. Marketing of the 80-grade BSRM Maxima began in 2015 for the construction of high-rise installations, nuclear power plants, tunnels and major bridges. BSRM is also preparing special rods of salinity corrosion for earthquake prone areas and coastal areas. BSRM is now setting up factories in Kenya and expanding business in Hong Kong.

 

AKS:

Another major giant in the steel sector is the Chittagong-based Abul Khair Group. Although flat steel was introduced in 1993 through corrugated steel production, rod production started in 2009. The company is marketing the rod under the AKS brand name. In the steel market, the production of steel in the first electric arc furnace in the country started with their hands. Abul Khair Group's steel plant has a rod production capacity of 1.4 million tons per year. Considering the market share, Abul Khair Group has established itself as a strong competitor of BSRM with long experience. The first TMT (Thermo Mechanically Treated) bar or rod in the country they bring to market. The company has also established a strong position in making billets. Abul Khair's group is self-sufficient in making about 1.2 million tons of billets.

 

KSRM:

Chittagong-based KSRM (Kabir Steel Re-Rolling Mill), the third largest steel market in the country, has been producing steel rods since 1984. Mohammad Shahjahan is the main entrepreneur of KSRM. The company initially had a production capacity of 150,000 tonnes with a semi-re-rolling mill. Europe's Pomini technology has later increased the production capacity of its own factory rods to eight million tons. The company is also working to increase the production of raw material billets between rods from six lakh to eight lakh tonnes. KSRM Factory is a 'Composite Steel Factory'. Such factories are producing rods of international standard by maintaining quality at every step from primary raw material (scrap) to rod production. At present, KSRM produces 55 lac cyclic load tolerant rods at 369 mega fingles. The company is also in the forefront of importing old ships to ensure the supply of raw materials for steel.

 

GPH Ispat:

GPH Steel has brought modern technology electric arc furnace through big investment in steel sector. The use of this technology produces the highest paid rods in a short time. Although the level of pollution depends on the type of industry, the quality of the infrastructure, the technology used and the management skills, the amount of damage is very small in the quantum arc furnace technology of GPH steel. GPH Ispat Limited's new factory is also ahead in efficient use of water. The world's most advanced technology has been used to treat wastewater here. In this system there is no chance of any waste or contaminated water going out. Rather it is conducive to the natural environment by purifying and reusing all waste water. Production is now underway at a new factory at Kumira in Sitakunda, Chittagong, at a cost of about Tk 2,500 crore. The company started steel production in 2008 at an auto factory in Sitakunda. However, the construction of the new factory started in February 2017 as its position in the local market continued to be strong. If fully operational, the company's annual rod production capacity, including new and old factories, will stand at about 1 million tons. Besides, the old GPH factory has an annual billet production capacity of 1 lac 68 thousand tons but the expanded new factory will produce 8 lac 40 thousand tons of billets. The new factory will have 500 W TMT bar and rods of different grades as well as various materials for construction of pre-fabricated buildings including sections, angles, channels, H beams, I beams. GPH products have been exported to several Indian states, including Sri Lanka and China. Last year, GPH Steel also had the credit of exporting billets from Bangladesh to the Chinese market for the first time.

 

Anwar Ispat:

Anwar Group is expanding the factory step by step by calculating the domestic demand of the steel sector. Khaled Iron and Steel Mills Limited was renamed as Anwar Ispat Limited in 2000. The company currently has a production capacity of 300,000 tons per year. Besides, billet production capacity is more than 1 lac 90 thousand tons. The company is working with the goal of increasing the existing capacity.

Manohar Hossain, current president of the Bangladesh Steel Manufacturers Association (BSMA) and managing director of Anwar Group, said, ‘Steel is a high-cost industrial sector. Where sales are more visible but profits are lower. The country is producing world class steel suitable for use in any important installation. Large projects require a lot of steel products. This growth of steel products will continue for the next 10 years. There is now more production capacity than demand. The combined production capacity of local entrepreneurs has now exceeded 5.5 million tonnes per annum. Entrepreneurs are working to increase the efficiency of using energy, chemicals and water in setting up or expanding factories. Entrepreneurs have to calculate additional compensation from waiting for the ship at normal time. This is having an impact on the economy by increasing costs. The country's steel sector will return to the desired growth after overcoming the slowdown in the steel market due to the corona.

 

Rahim Steel:

A subsidiary of Rahim Group in the steel sector, started its journey in 1968. By setting up a re-rolling mill, 40 grade rods were made in its factory from the beginning. However, being able to ensure quality to the customer increased the demand and at the same time the second factory was built in 1976. At present Rahim Steel is producing various types of steel products including 500 TMT bar, hot rolled plate, billet, shaft round bar. They are also demanding to market earthquake resistant rods in the country first.

 

Mostafa Hakim Group:

Mostafa Hakim Group has built expertise in the production and marketing of steel products for four decades. The group's two affiliates Golden Steel Limited and HM Steel and Industry have also recently expanded their business in the steel market. Golden Steel Limited's steel production capacity was 2.5 lac tons per annum. However, from this year, the production capacity has been increased to seven lac tons per annum through HM Steel, another subsidiary of Mostafa Hakim Group. The company is providing quality rods for the construction of economic zones including ongoing mega projects.

 

Bayazid Steel:

Bayazid Steel traveled to Nasirabad in Chittagong in 1986 holding the hand of entrepreneur Abu Bakar Chowdhury. Belgium's Temco technology was used in the factory in 2010 to produce rods. At present the production capacity is about one lac tons per year. The company has a rod making factory as well as a billet factory.

 

BSI:

The Bandar Steel Industries (BSI) factory at Madanpur in Narayanganj was established in 2002. Together with the automated re-rolling they make billet and BSI brand rods. Their products are fatigue tested from the United States. Seema Steel started in 1991 with the shipwreck. Boundary automatic re-rolling mills have been producing steel rods since 2003. The company's factory at Sitakunda has an annual production capacity of 60,000 tons.

 

Among the leading companies in steel production are RSRM Steel, Magnum Steel Industries, SSRM. Apart from this, there are many small and traditional factories in the steel sector. Expert said that the steel is the biggest sector among construction materials. The market size of Steel sector of Bangladesh will be around 50 thousand crore BDT. Numerous big projects are being implemented in the public sector. It will increase continuously for the next 10 years i.e. till 2030. There is no substitute for using the latest technology to ensure the highest quality in steel products. That's why companies have come forward to use the latest technology, even if the investment is high. Iron ore, coal, limestone and small quantities of old iron are used as raw materials in basic factories. Bangladesh will at some stage move towards the basic steel industry, that is the expectation.

 

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