SS Steel propels industry dominance through strategic acquisitions, innovation

SS Steel Limited, a reputed steel manufacturer in Bangladesh, has strategically utilised the power of acquisition and merger to fuel its impressive expansion.

Over the years, the company's visionary Chairman, Javed Opgenhaffen, has orchestrated a series of successful acquisitions, transforming underperforming units into profitable ventures while contributing to new job creation.

In a notable move in August 2020, SS Steel acquired Saleh Steel Industries in Chattogram, swiftly streamlining operations and augmenting production capacity. March 2022 witnessed another significant milestone as the company acquired Al-Falah Steel & Re-Rolling Mills, reviving the near-closed factory in Narayangonj.

The firm's approach underscores the contemporary business reality that values sustainable growth. Mergers and acquisitions, coupled with BMRE (Balancing, Modernisation, Rehabilitation, and Expansion) initiatives for each plant, have been pivotal in revitalising units and creating value in a dynamic market.

The recent operation take-over of Peninsula and Super Steel Mills further exemplify SS Steel's commitment to efficiency and increased production capacity. By integrating the assets and operations of these entities, the company aims not only to streamline its operations but also to contribute significantly to the national steel production landscape.

Moreover, many entrepreneurs are now preferring to buy out underperforming companies in a bid to cut project implementation time and costs.

Building a new factory from scratch is very costly and time-consuming as it involves lots of activities such as securing permissions from various regulatory authorities, erecting structures, importing machinery and uncertainty over FX exchange rate, then starting its operation, said Javed Opgenhaffen, Chairman of SS Steel Limited.

In case of M&A, companies can gain a competitive edge as they can quickly operationalise the plant and create value for the company, customers and investors, he added.

Javed Opgenhaffen, who graduated in management from Queen Mary, University of London, and also graduated in Employment relations from London School of Economics and Political Science, emphasises on continuous improvement with adopting best global practices.

He articulates the company's ethos, stating, "SS Steel always looks for new ways, makes the effort, and takes initiatives to adopt those into business processes, delivering the best products to consumers' doorsteps."

In addition to strategic business acumen, SS Steel prioritises technological advancement. Opgenhaffen highlights the use of the latest induction furnace technology, an energy-efficient and controllable melting process, reflecting the company's commitment to sustainability.

Located in Tongi on the outskirts of Dhaka, the company sells its products by its renowned brand name such as SS Tiger B400 DWR/60G TMT bar and SS Tiger B500 CWR TMT bar.

The combined capacity of SS Steel, Saleh Steel, Al-Falah Steel, Peninsula & Super Steel now stands at approximately 500,000 tonnes of MS rod per year and currently employs around 1,750 people.

With an annual combined turnover of around Tk 2150 crore, SS Steel and its related steel manufacturing concerns are poised to reach Tk 3,000 crore in the next financial year, demonstrating sustained financial growth.

Since its enlistment on both Dhaka and Chittagong stock exchanges in 2019, the company has been providing regular dividends to its investors.  

This success story not only positions SS Steel as a key player in Bangladesh's steel industry but also exemplifies the transformative potential of strategic mergers and acquisitions in fostering sustainable business growth.