Unitex Group to invest Tk650 crore on Chemical, Steel & Paint business

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Unitex Group, a growing local conglomerate with diversified business in spinning, LPG, now plans to invest about Tk650 crore to set up manufacturing plants for chemicals, steel and paint at the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Chattogram, reported by The Daily Star.

As reported, the company has already submitted its investment proposal to the Bangladesh Economic Zones Authority (BEZA), seeking a 20-acre plot at the BSMSN.

“We will start development work on the proposed project after getting the land allotment,” said Mohammad Arif, chief financial officer of Unitex. Of the total investment, 60 per cent of the project to be financed by local bank while the rest will be paid through the company’s equity.

The plan will be implemented in phases with the steel and chemical manufacturing plants to be constructed first while the paint factory will be established later.

Consumption of steel has been rising for the last few years riding on the increasing gross domestic product (GDP) of the country.

Moreover, the government’s development projects have left a positive impact on the nearly Tk50,000 crore industry, according to market players. At present, government projects account for 35 per cent to 40 per cent of the total steel consumption in Bangladesh, up from 15 per cent a decade ago.

With that in mind, the new steel manufacturing unit, which is expected to create about 1,100 opportunities for direct employment, will be dedicated to the local market. On the other hand, the chemical plant will supply both the domestic and export markets.

Unitex began its journey as a spinning and composite yarn manufacturing business in 1992 and has since evolved into a rapidly growing multi-dimensional conglomerate.

The group considers itself to be a solution provider, primarily for cotton sourcing and logistics support. Unitex also provides a wide variety of services in other sectors, including liquid petroleum gas and petroleum.

Meanwhile, the Daily Star also reported quoting Beza Executive Chairman Paban Chowdhury that they will allow construction work on these factories to commence after the central effluent treatment plant is established. The land will be allotted for the project considering Unitex’s investment plans, he added.

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