Mostafa Hakim Group invested Tk 1,000 crore to enhance its sister concern’s facility, HM Steel and Industries, in Chattogram’s Karnaphuli upazila.
HM Steel has the capacity to produce 4 lakh tonnes of billet, the semi-finished product, to produce MS rods, angles, square bars, flat bars and channels.
As of 6th March (Saturday), Mostafa-Hakim Group launched a new MS rod production plant to enhance its yearly production capacity by 4 lakh tonnes. Out of total investment amount, Tk 700 crore from United Commercial Bank.
Four years ago, the company set up its first fully-automated rebar manufacturing unit called Golden Ispat.
Land Minister Saifuzzaman Chowdhury inaugurated the plant through a ceremony chaired by Mohamad Manjur Alam, managing director of Mostafa-Hakim Group and former mayor of Chattogram City Corporation (CCC).
Former mayor, now the chairman of HM Steel and Industries as well, said Mostafa-Hakim Group currently employs around 4,000 people while the new plant would create jobs for 1,500 more.
The group embarked its journey in the ship breaking industry in the early ’80s. Later, it stepped into the steel industry in 1984 with a manual rod production plant named Golden Iron. It then established a semi-automated mill called Golden Steel in 1987. In 2017, the group established Golden Ispat.
Over the last few decades, the Chattogram-based company has also spent in a number of ventures, including cement, oxygen, textiles, real estate and bricks, according to Mohamad Sarwar Alam, director of Mostafa-Hakim Group.
“A good response for the quality products of Golden Ispat as well as increasing domestic demand for steel encouraged this expansion,” he added.
Golden Ispat has the capacity to produce 2 lakh tonnes annually. So far, its share of the country’s total production capacity of 8 million tonnes is only 2.5 per cent.
Currently, Bangladesh Steel Re-Rolling Mills (BSRM) is considered as the market leader. It has two units and can produce a combined 1.6 million tonnes of MS rod each year.
BSRM is followed by Abul Khair Steel with 1.3 million tonnes, GPH with 0.9 million tonnes and KSRM with 0.6 million tonnes. Over 140 steel factories of varying sizes are currently in operation.
However, the local demand stands at 6.5 million tonnes per year against an annual production capacity of 8 million tonnes.
The government has also taken a number of mega projects which would need more steel in the coming years, Alam said.
With the new plant, the group predicted that MS rod production capacity would reach 6 lakh tonnes.
“Our two units would combinedly contribute 7.5 to 8 per cent of the country’s total capacity,” Alam added.
Sitakunda lawmaker and Mostafa Hakim Group director Md Didarul Alam, United Commercial Bank managing director Mohammad Shawkat Jamil and Mostafa Hakim Group and HM Steel and Industry director Mohammad Sarwar Alam addressed the programme as special guests.