Deshbandhu Group to Establish $ 110 Million Plastics Factory Using Foreign Loans


07 January 2022, 13:10

Last modification: 07 January 2022, 13:54

Infographic: SCT


Infographic: SCT

Deshbandhu Group, one of Bangladesh’s largest conglomerates, plans to set up a massive plastic factory at a cost of $ 103 to $ 110 million in Khulna.

To capture the rapidly growing plastics market at home and abroad, the plant will have a production capacity of 720 tons of plastic chips per day.

“Currently, China alone holds a third of the global plastics market, but strained relations between it and the United States have taken its dominance in the market a blow. In addition, Europe imposed a 7.5% tax on Chinese products. can easily conquer the market, ”said Bashir Ahmed, deputy general manager of Deshbandhu group.

He also said: “We want to reduce the country’s dependence on imports of plastic chips. This will allow us to keep our money inside the country.

The Deshbandhu group, which has 21 subsidiaries, obtained financing from two banks in Switzerland and Germany to set up the plastics factory in Khulna.

“There is no investment-friendly bank in Bangladesh. Local banks give loans for a very short period and charge high interest rates. This places a burden on investors as they have to repay the money in big payouts, ”Bashir said.

“On the other hand, foreign banks give investment loans over a long period – 15 to 25 years. Their interest rate is also low – 1.6% to 2%. This is why the borrower has the ability to repay comfortably, “he added.

A green company

The Deshbandhu Group’s plastic plant – envisioned as a green business – will use 120 tonnes of recycled plastic and 600 tonnes of virgin chips as raw material for daily production.

It will manufacture polyethylene terephthalate (PET), which is used in packaging, fabrics, auto parts, electronics and many other products that people use on a daily basis. It will also produce standard polyester staple fiber (PSF) shavings for textiles, used as the plastic and polymer base.

The company will collect used plastics primarily through the existing process, where scrap buyers and ragpickers collect discarded plastics and sell it to wholesalers.

“We also plan to set up collection centers in each district to purchase used plastics from primary collectors at an appropriate rate,” Bashir said.

Job opportunity for 2000 people

The conglomerate will set up its gigantic plastic factory in the Mongla export processing zone.

“We took a lease of 100 bighas of land from the Sikder group for 40 years to set up this state-of-the-art factory in Mongla EPZ. We bring the machinery and technology from Germany and Switzerland,” said the MP. general manager of the Deshbandhu group.

The company applied for permission from the Khulna Environment Ministry in December last year.

The business conglomerate aims to start construction of the plastic plant in January this year and go into production by the end of 2023.

“Revenue from the plant will begin to flow in the first quarter of 2024. We forecast annual revenue of $ 500-600 million from the plant, which will employ at least 2,000 people,” Bashir said. .

He added: “After responding to local demand, we will try to enter the European market to sell our plastic chips. “

According to the Bangladesh Bureau of Statistics, the global demand for plastic products has increased by 20% every year since 2007. The average use of plastic is 50 kg per capita in the world, while it is 9 kg in Bangladesh. .

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