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Aims to reduce Bangladesh’s dependence on imports of construction materials
BSRM has established the LRPC Strand Manufacturing Plant at Mirsarai in Chattogram as the steelmaker seeks to capitalize on the impending construction boom in Bangladesh.
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BSRM has established the LRPC Strand Manufacturing Plant at Mirsarai in Chattogram as the steelmaker seeks to capitalize on the impending construction boom in Bangladesh.
Bangladesh Steel Re-Rolling Mills (BSRM) is poised to introduce a new building material called “Low Relaxation Prestressed Steel Strand (LRPC strand)” with the aim of meeting the 3,000 crore market segment of Tk which is currently dominated by the imports.
According to Tapan Sengupta, deputy general manager of BSRM, the country’s leading steelmaker has invested a total of around Tk 1,000 crore to establish an LRPC strand manufacturing unit under his new company BSRM Wires. LRPC strands are used in the prestressing of concrete for different types of construction work.
For all the latest news, follow the Daily Star’s Google News channel. For example, LRPC strands are used in prestressed concrete beams for the construction of roads, flyovers, river and rail bridges, prestressed concrete domes, hollow core slabs, steel beams and TT slabs, silos, sheds, aqueducts and viaducts, as well as railway sleepers.
There are currently a number of bridges, bridges and tunnels under construction where LRPC strands are used.
“On this ground, BSRM made the decision to manufacture LRPC strands to meet local demand,†he said.
Bangladesh needs around 12,000 tonnes of LRPC strands per year, while BSRM Wires has an annual manufacturing capacity of 30,000 tonnes, Sengupta said.
The current market for LRPC strands is approximately Tk 3000 crore per year and will continue to grow over the next 20 years.
He added that the new plant will also manufacture other building materials, such as electrodes and galvanized products.
“We have set up the large capacity plant in view of the future demand for LRPC strands as well as the increased physical infrastructure development work,” said the deputy general manager.
Sengupta hopes the new unit will enter commercial service by October 15, with preparations almost complete.
BSRM Wires will manufacture three import substitutes – LRPC, ACSR and Razor Wire – alongside carbon dioxide wire and gabion wire.
BSRM has established the LRPC Strand Manufacturing Plant at Mirsarai in Chattogram as the steelmaker seeks to capitalize on the impending construction boom in Bangladesh.
The Tk 500 crore project was implemented with 70 percent bank financing and a 30 percent equity stake.
Dhaka Bank arranged the fund by syndication with six other banks – Bank Asia, City, NCC, Modhumoti and Mercantile – and a financial institution, the Saudi-Bangladesh Industrial and Agricultural Investment Company, Sengupta said.
The factory created employment opportunities for more than 500 people, bringing the total number of people employed by the group to 4,700.
It is the first and only company to manufacture LRPC strands in Bangladesh.
Considering the demand for the products, the group decided to set up a new factory with diversified product lines, Sengupta said.
BSRM recorded a profit of Tk 92 crore for the 2019-2020 fiscal year, when its turnover was Tk 2,358 crore.
Regarding the financing of the project, Emranul Huq, managing director and CEO of Dhaka Bank, said that they had provided 321 crore of Tk through syndication.
“Basically, Dhaka Bank played a leading role in financing the project because it is a potential project in Bangladesh and the business was viable,†he added.
Huq went on to say that the loan was for a seven-year term, including a one-and-a-half-year grace period.
“Usually the grace period is one year, but we added six months given the Covid-19 situation,†he said.
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