STAR BUSINESS REPORT

Bangladesh Steel Re-Rolling Mills (BSRM) Ltd launched a new environmentally friendly steel plant yesterday, which is funded by the Japan International Cooperation Agency (Jica), according to a press statement.

The plant, located in Chattogram’s Mirsharai area, marks a significant milestone for Jica’s support to Bangladesh’s private sector.

The project, supported by a $50m loan signed in October 2023, represents Jica’s eighth Private Sector Investment Finance (PSIF) transaction and its first corporate loan project in Bangladesh, Jica said in the statement.

Industries, Housing and Public Works Adviser Adilur Rahman Khan, Italian Ambassador to Bangladesh Antonio Alessandro, Chattogram City Corporation Mayor Shahadat Hossain, BSRM Chairman Alihussain Akberali and Jica Bangladesh Chief Representative Ichiguchi Tomohide were present during the launch.

The new BSRM plant will add 5 lakh tonnes of rebars per year. It also has the capacity to make 1 lakh tonnes of wire rods annually and will expand BSRM’s billet production capacity by 2.50 lakh tonnes a year.

“By reducing dependence on imported steel, the facility will help stabilise the country’s trade balance while generating more than 500 new employment opportunities and supporting the development of local industries,” Jica said, adding that it recognises that a strong domestic steel industry is crucial for infrastructure development and economic resilience.

“We hope that the inauguration of this new plant will serve as a symbolic milestone to develop Bangladesh’s industries further, attracting increased foreign investment to Bangladesh,” said Tomohide.

Jica said it prioritises sustainable and responsible industrial growth beyond financing.

The BSRM plant incorporates cutting-edge environmental technologies, including an advanced air pollution control (APC) system to ensure clean air and a water treatment and recycling facility, the press release said.

Through the integration of rooftop solar power plants and energy-efficient production methods, the factory will mitigate climate change by reducing greenhouse gas (GHG) emissions by 10,000 tonnes (CO2 equivalent) a year, it added.

The plant also promotes a circular economy by repurposing slag from steel production for construction use, the Japanese agency said, adding that the initiatives contribute to achieving several Sustainable Development Goals (SDGs), including affordable and clean energy and climate action.