Bangladesh Steel Re-rolling Mills (BSRM) is investing BDT700crore ($82mn) to increase annual rod production by 500,000mt. The expansion will be funded by the company cash and bank loans. The company is expanding its capacity to meet growing domestic demand with an expected operational start date by mid-2023. 

 

Consumption of steel in Bangladesh has been increasing in line with the growth of the country’s GDP and supported by recent government-funded development projects. Government projects constitute 35-40pc of the total steel consumption in the country, substantially up from a mere 15pc 10 years ago. The industry segment is estimated at BDT50,000crore.

 

BSRM produces 1.6mn mt of re-rolling steel and 2mn mt of billet annually. Bangladesh’s annual steel production capacity is seeking to balance the increasing per capita steel consumption levels. In 2018, steel consumption in Bangladesh rose to 50kg per person steel in comparison to a 208kg per person global average, according to the World Steel Association. 

 

David Index previously reported on GPH Ispat’s expansion, another player in the longs industry in Bangladesh.

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