The BSRM Group reports that it is establishing a wire manufacturing operation—called BSRM Wires—in Bangledesh that will focus on making wire products that are currently imported.
Per a story at www.thedailystar.net, the company plans to spend approximately $54 million to build a plant in Chattogram. It cited a "booming" steel industry that is supported by "mega projects that the government has set in motion," and that BSRM Wires hopes to "capitalise on the impending construction boom in Bangladesh."
In the story, BSRM Group Chairman Alihussain Akberali said that the plant will make four types of wire that are currently imported. He observed that while prices for raw materials of wire are very low in the international market but the prices of the finished goods end up being high for Bangladesh due to imports. "Local manufacturing will reduce their prices," he said.
A project proposal cited a combination of galvanized wire, LRPC wire, welding electrode and carbon wire. The plant will have the capacity to annually manufacture 77,000 metric tons of wires when it opens in 2020. The plant will create some 400 jobs, bringing the BSRM’s total employment to 4,700.
The main product focus of BSRM is rebar, but it also has a plant at Nasirabad in Chattogram that manufactures wire rod. That plant, described as "the first and only company to manufacture high-strength reinforcement wires in Bangladesh," has annual capacity of 24,000 metric tons of wire rod.
The new project has seen strong support from the banking sector, led by Dhaka Bank and six other banks —Bank Asia, City, NCC, Modhumoti and Mercantile—and one financial institution, the Saudi-Bangladesh Industrial and Agricultural Investment Company. The banks have invested in the project as it would have a direct impact on the economy, said Syed Mahbubur Rahman, managing director of Dhaka Bank. "The project has good prospects," he said.
Japan’s Kobe Steel, Ltd. and shareholders of Kobe Special Steel Wire Products (Pinghu) Co., Ltd. (KSP), have agreed to invest approximately $8 million increase the production capacity of the Chinese joint venture that processes special steel wire rod into steel wire.
A press release said that the latest announcement marks the fifth time that production will have been increased for the joint venture, which includes partners Shinsho Corporation, Osaka Seiko Limited, Meihoku Kogyo Co., Ltd., Metal One Corporation and Kyodo Shaft Co., Ltd.
KSP was established in 2007 to supply steel cold heading (CH) steel wire to parts manufacturers for use in making products such as automotive bolts, nuts and bearing products, the release said. Full-scale operation began in 2009. Kobe Steel provides all special steel wire rod used by KSP to ensure that the joint venture production has the same high-quality material.
The release said that the latest capacity expansion was needed to help meet the growing needs of KSP’s customers. Approximately $8 million will be spent to install three additional wire drawing machines, for a total of 11, and two more heating furnaces, bringing the total to eight. The new equipment is anticipated to start up in March and June 2020, respectively. Production capacity will increase to 5,500 metric tons per month, it said.
Kobe Steel has positioned Japan, the ASEAN countries, North America and China as four major areas to process special steel wire rods for supply to parts manufacturers who have set up operations in these countries and regions. To date, Kobe Steel has established two plants in Thailand for wire rod processing, one in the U.S., one in Mexico, and four in China. Looking to the future, Kobe Steel will continue to develop its supply network for high-quality special steel wire rods centered on these four areas.