BSRM Steels, Bangladesh’s largest steel producer, will commission its new plant in Mirsarai, Chattogram in January 2025 with an annual production capacity of 600,000 tonnes of mild steel (MS) rods. With the commissioning of this plant, BSRM aims to increase its market share from 23% to 34% and further increase its influence in the local market. Built at an investment cost of approximately USD 217 million, the plant will increase the company’s production capacity to 2.2 million tonnes per annum.
The new plant was financed with a loan of approximately USD 108 million from international lenders in Japan, India, and Singapore. The loan repayments will range from seven to twelve years, and this foreign financing will provide financial flexibility for BSRM’s growth projects.
BSRM Steels reported a profit increase to Tk 850 million (approximately USD 7.7 million) in the first quarter of FY2024-25, marking an 86% y-o-y rise, driven by higher sales and lower global raw material prices. Quarterly sales increased by 3% to Tk 15.24 billion (USD 138 million), while stability in foreign exchange rates and lower financing costs increased profit margins.
BSRM Group’s other company, Bangladesh Steel Re-Rolling Mills, also saw a 71% increase in profits despite a 5.8% decline in revenue. With the commissioning of the new plant, BSRM’s revenue potential is expected to increase and its competitiveness in the domestic market is expected to increase further.
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