- The Narayangonj-based steel plant aims to increase its production capacity by more than three times to 216,000 tonnes MS Rod annually by 2025.
- SS Steel Limited acquired Al-Falah Steel in March 2022 and they have so far invested around BDT 184.14 crores.
BN Report
Al-Falah Steel & Re-Rolling Mills Limited, a sister concern of SS Steel Limited, is set to more than triple its production capacity within next two years, riding on an increased demand for quality billets.
The company has already increased its production capacity from 64,800 tonnes to 151,200 tonnes MS billet with a plan to rise the total combined capacity of 216,000 tonnes MS Rod annually by 2025.
SS Steel Limited, a reputed steel manufacturing company in Bangladesh, is engaged in steel production and sales. They acquired Al-Falah Steel & Re-Rolling Mills Limited in March 2022 while the factory was almost closed. The company’s production capacity was only 64,800 tonnes MS billet per year and had only 360 decimal of land.
After buying equity shares, SS Steel has taken the initiative to increase the production of the Al-Falah Steel, a Narayangonj-based steel plant, with an investment of around Tk 184.14 crores.
“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 decimal of new land, increased electricity power 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 employs more than 250 employees, is now producing high quality billets and sells its product by its renowned brand name, he added.
As part of the steel plant inauguration celebration, the company arranged a factory visit in Narayangonj for a group of media houses on 14th October, 2023. During the visit, a group of journalists observed the total steel manufacturing process. Md. Mostafizur Rahman Sazzad, Company Secretary – SS Steel and Al Falah Steel & Re-Rolling Mills Ltd and Shaheed Hossain Tanjil, Executive Assistant to Chairman, SS Steel Ltd were also present at the time.
According to the Bangladesh Steel Manufacturers Association and entrepreneurs, even 10 years ago, the country was producing 2.5 lakh tonnes of MS Rod annually. At present, according to the demand, the average annual production and marketing is about 60 lakh tonnes. The pace at which the factory capacity is being expanded will rise to 1 crore tonnes by 2030.
A total of 40 modern and 150 traditional factories are producing steel in the country. The current average per capita steel consumption is estimated at 45kg in Bangladesh. In 2030, this demand is expected to rise to more than 100kg per capita.
The implementation of mega projects, the development of economic zones, and the increase in the construction of buildings in villages with expatriate income, have been the main reasons for the growth of the steel sector in Bangladesh.
Steel-producing companies are focusing on increasing production by expanding modern technology and factories. The steel sector is escalating by relying on the investment of the private sector diversifying products and transforming production.
