Aluminium industry facing slump
Friday, 17 October 2008
Jasim Uddin Haroon
The country's aluminium industry has been facing a slump due to a sharp fall in the local demand, manufactures said Tuesday.
They have cited slow growth in the country's construction sector as the main reason behind the fall in the sale of aluminium products. Aluminium products, a composition of magnesium and silicon, are used as alternatives to iron and wood.
"We have been facing a downtrend in our business. This is mainly due to the slow growth in the country's construction sector," said Ibrahim Khalil, executive director of Aramit Aluminium, a leading Thai aluminum manufacturer.
He, however, could not give any statistics in support of his claim. "It needs data to comment, I have no data right this moment to specify the fall, but my company's production has fallen far below the expected level."
Following the down trend in the business, a number of local companies are now opting for export of their products to India.
Mr Ibrahim said his company is now desperately looking for Indian market due to fall in domestic demand.
He said: "My company is now exploring opportunities for export to seven bordering Indian states, where the demand for Bangladesh's Thai Aluminium products is high."
He said his company has so far exported around 300 tonnes of Thai Aluminium products to India.
Kai Aluminum Industries, another local manufacturer, is exporting its products to the neighbouring country.
Kai exported only 15 tonnes few months back.
JU Mallick, managing director of Avesta, told the FE that his company had also been facing problem following drop in the sales.
"I have been supplying around 15 tonnes a month although my plant has capacity to produce at least 150 tonnes a month," Mallick added.
He also said his plant was set up at Siddhirganj in Narayanganj around two years back following a rise in the demand for aluminium products in the country.
A sales manager of Kai Bangladesh Aluminium Limited, a joint venture of Bangladesh and Pakistan, told the FE his company's sales dropped almost by 30 per cent in recent period.
Manufacturing of aluminium products in the country started around 14 years back by Bangladesh-Thai Aluminium Limited.
Currently around seven aluminium manufacturers are in production in Bangladesh. China-based Chung-Hua is the market leader followed by Kai Bangladesh Aluminium Limited and Aramit Aluminium.
There was local demand for 1300 tonnes of aluminium products worth Tk 300 million a month. Local companies import raw materials like aluminium ingot and billet from China, India, Malaysia and Singapore for production of the building materials.
The country's aluminium industry has been facing a slump due to a sharp fall in the local demand, manufactures said Tuesday.
They have cited slow growth in the country's construction sector as the main reason behind the fall in the sale of aluminium products. Aluminium products, a composition of magnesium and silicon, are used as alternatives to iron and wood.
"We have been facing a downtrend in our business. This is mainly due to the slow growth in the country's construction sector," said Ibrahim Khalil, executive director of Aramit Aluminium, a leading Thai aluminum manufacturer.
He, however, could not give any statistics in support of his claim. "It needs data to comment, I have no data right this moment to specify the fall, but my company's production has fallen far below the expected level."
Following the down trend in the business, a number of local companies are now opting for export of their products to India.
Mr Ibrahim said his company is now desperately looking for Indian market due to fall in domestic demand.
He said: "My company is now exploring opportunities for export to seven bordering Indian states, where the demand for Bangladesh's Thai Aluminium products is high."
He said his company has so far exported around 300 tonnes of Thai Aluminium products to India.
Kai Aluminum Industries, another local manufacturer, is exporting its products to the neighbouring country.
Kai exported only 15 tonnes few months back.
JU Mallick, managing director of Avesta, told the FE that his company had also been facing problem following drop in the sales.
"I have been supplying around 15 tonnes a month although my plant has capacity to produce at least 150 tonnes a month," Mallick added.
He also said his plant was set up at Siddhirganj in Narayanganj around two years back following a rise in the demand for aluminium products in the country.
A sales manager of Kai Bangladesh Aluminium Limited, a joint venture of Bangladesh and Pakistan, told the FE his company's sales dropped almost by 30 per cent in recent period.
Manufacturing of aluminium products in the country started around 14 years back by Bangladesh-Thai Aluminium Limited.
Currently around seven aluminium manufacturers are in production in Bangladesh. China-based Chung-Hua is the market leader followed by Kai Bangladesh Aluminium Limited and Aramit Aluminium.
There was local demand for 1300 tonnes of aluminium products worth Tk 300 million a month. Local companies import raw materials like aluminium ingot and billet from China, India, Malaysia and Singapore for production of the building materials.