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Construction materials industry thriving on mega projects
Cement, steel production saw significant growth in past decade
JAGARAN CHAKMA
The construction materials industry of Bangladesh has registered massive growth over the past decade as some mega projects are providing ample opportunity for capacity building and ensuring world-class products, according to industry insiders.
Local companies need to ensure quality products as well as display sufficient production capacity and operational efficiency to participate with international firms in implementing mega projects, they said.
At present, the government is implementing around a dozen mega projects using locally made construction materials instead of imported alternatives.
For example, at least 10 local companies are contributing materials, such as cement, steel and paint, for constructing the country’s first elevated expressway in Dhaka.
And if the products being provided by these local companies were substandard in any way, then the international firm implementing the project would opt for imports, they added.
As such, a major portion of the Tk 8,940 crore project is being constructed using local materials.
Of the 10 local contributors, six are cement companies while two are steel makers and the others make paint and PVC products.
Sources say the cement makers are: Shah Cement Ltd, Crown Cement PLC, Bashundhara Industrial Complex Ltd, Heidelberg Cement, Seven Circle (Bangladesh) Ltd and Premier Cement Ltd.
The BSRM and GPH Ispat are providing steel for the project while two concerns of RFL Group -- RFL Pipe and Fittings, and Rainbow Paints -- are supplying the necessary pipes and road marking materials.
“It is a matter of pride that we are participating in building the elevated expressway. We provided a significant amount of cement for the project,” said Mohammed Amirul Haque, founder managing director and CEO of Premier Cement.
According to him, local firms have long been contributing to the economy by improving the efficiency and quality of their products for use in mega development projects.
For example, local cement manufacturers have increased their production capacity to 58 lakh tonnes per annum while it was 20 lakh tonnes at best just 10 years ago.
“The public sector accounts for about 45 percent of the total consumption,” he said, adding that cooperation between local and international firms is needed to ensure better quality products and increase supply.
As such, government mega projects and other development initiatives directly contribute to the growth of local manufacturers while also improving the environmental compliance and efficiency of their units.
“Besides, this cooperation opens an avenue for exports [by facilitating a relationship between local suppliers and international construction companies],” Haque said.
RN Paul, managing director of RFL Group, said they are providing soil, waste and rainwater pipes and fittings for the drainage system of the elevated expressway as well as road marking materials.
“So, we are providing two products for the entire project. We are proud to be a partner of the project,” he added.
Paul also said if international firms involve local companies in their projects, then the latter would gain experience and confidence as well as a sense of responsibility.