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Al-Falah Steel & Re-Rolling Mills Limited, a sister concern of SS Steel Limited, is set to more than triple its production capacity within the next two years, riding on increased demand for quality billets, according to a company press release.
The company has already increased its production capacity from 64,800 tonnes to 151,200 tonnes of MS billet, with a plan to raise the total combined capacity of 216,000 tonnes of MS Rod annually by 2025.
SS Steel Limited, a reputable steel manufacturing company in Bangladesh, is engaged in steel production and sales. They acquired Al-Falah Steel & Re-Rolling Mills Limited in March 2022 when the factory was almost closed. At that time, the company's production capacity was only 64,800 tonnes of MS billet per year and they owned just 360 decimals of land.
After buying equity shares, SS Steel took the initiative to increase the production of Al-Falah Steel, a Narayanganj-based steel plant, with an investment of around Tk 1.84 billion.
“To increase the company's production, we imported a new machine with a production capacity of 86,400 tonnes per year. To set up the machine, we bought 240 decimals of new land, increased our electrical capacity and set up a new electric line with a 6-megawatt power capacity,” said Sayeed Rezaraj Ahmmad, director of SS Steel Limited and nominated director of Al-Falah Steel.
Al-Falah Steel plant, which now employs more than 250 employees, is now producing high-quality billets and sells its product by its renowned brand name, he added.
The Al-Falah Steel plant, which now employs over 250 employees, is producing high-quality billets and sells its products under its renowned brand name, he added.
As part of the steel plant inauguration, the company recently arranged a factory visit in Narayangonj for a group of media houses.
During this visit, a group of journalists observed the entire steel manufacturing process. Md Mostafizur Rahman Sazzad, company secretary at SS Steel and Al Falah Steel & Re-Rolling Mills Ltd, and Shaheed Hossain Tanjil, executive assistant to the chairman at SS Steel Ltd, were also present.
According to the Bangladesh Steel Manufacturers Association and entrepreneurs, just a decade ago, the country produced 250,000 tonnes of MS Rod annually.
Now, based on current demand, the average annual production and marketing stand at about 60 million tonnes.
The pace at which the factory capacity is being expanded will rise to 10 million tonnes by 2030.
Currently, 40 modern and 150 traditional factories produce steel in the country. The average per capita steel consumption is estimated at 45kg in Bangladesh.
By 2030, this demand is expected to exceed more than 100kg per capita.
The implementation of mega projects, the development of economic zones, and the construction of village buildings funded by expatriate income have mainly fueled the growth of the steel sector in Bangladesh.
Steel-producing companies are increasingly focusing on amplifying production by adopting modern technology and expanding factories.
The steel sector is growing strongly with the investment of the private sector, diversification of products and transformation of production.