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The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with Meghna Re-Rolling & Steel Mills Limited (MRSL), a sister concern of Meghna Group of Industries (MGI), to establish Bangladesh's first climate-smart steel plant.
This state-of-the-art facility will produce 1.5 million tonnes of steel annually - which represents around 20 per cent of Bangladesh's current annual demand - using 100 per cent recycled scrap, supporting the country's economic growth while tackling climate challenges, according to an IFC statement.
Supported by a financing package of $100 million, this transformative project is set to deliver significant economic, environmental, and social benefits, it added.
By leveraging advanced technology, it will reduce carbon emissions compared to traditional steel production, while creating over 20,000 direct and indirect jobs across the value chain, driving growth and sustainability.
"Bangladesh's steel industry is critical for building infrastructure that drives sustainable growth," said Martin Holtmann, IFC's Country Manager for Bangladesh, Bhutan and Nepal.
"This project represents a major leap forward, not only in climate-smart manufacturing but also in job creation and industrial advancement. We are excited to contribute to the transformation of Bangladesh's industrial landscape, supporting the nation's journey towards a greener, more resilient future."
It also said this project marks a major milestone for Bangladesh's steel industry, aligning with the Paris Agreement and meeting the criteria for 100 per cent climate finance under global climate tracking principles.
Additionally, IFC and MRSL are collaborating to develop a comprehensive decarbonisation roadmap, setting a new benchmark for sustainability in the country's industrial sector.
MGI Chairman and Managing Director Mostafa Kamal said, "We are thrilled to partner with IFC on this groundbreaking project that will reshape the future of Bangladesh's steel industry. This investment not only strengthens our capacity to produce high-quality, climate-smart steel but also represents a significant milestone for our country's economic and industrial growth."
The investment also aligns with the World Bank Group's vision for the green, resilient, and inclusive development (GRID), promoting climate-smart infrastructure, economic diversification, and industrial competitiveness, according to the statement.