Bangladesh’s largest steelmaker BSRM plans to invest around BDT 100 bln (USD 810 mln) to build the country’s first integrated hot-rolled flat steel plant at the Mirsarai Economic Zone, according to local media reports.
The proposed facility will have an annual production capacity of 1.5 mln tons of hot-rolled flat steel, mild steel and stainless steel products. According to the reports, Bangladesh’s annual demand for these products exceeds 2 mln tons and is currently met entirely through imports, mainly from China, India, Australia and the United States. Annual flat steel imports are valued at around BDT 140-150 bln (USD 1.13-1.21 bln).
Local media reported that BSRM has already acquired land for the project and started site development. The plant will use electric arc furnace (EAF) technology and is expected to begin commercial production within three years of construction.
According to the reports, BSRM has presented the investment proposal to the government and is seeking long-term policy support, including a 10pct supplementary duty on imported hot-rolled flat steel for 10 years, to help secure financing for the capital-intensive project.
Founded in 1952, BSRM is Bangladesh’s largest steel producer, with an annual steelmaking capacity of 2.3 mln tons and rolling capacity of 1.6 mln tons. The company primarily produces rebars, billets, wire products and structural steel for the domestic market.
1 USD / 123.2 BDT