BSRM to positively impact construction
Syed Ishtiaque Reza | Wednesday, 2 July 2008
As BSRM steels, the country's largest steel re-rolling mill, began production from mid of June, the realtors expect the flat price of rods would come down to make a positive impact for the construction sector.
BSRM Steels Ltd, the new giant production facility of Bangladesh Steel Re-rolling Mills (BSRM) Group, has an annual production capacity of 3,75,000 tonnes of steel rods.
Official sources said, the BSRM 500W, the highest quality steel, would make construction stronger, safer, more durable, and also more cost-effective. It's used across the world, they added.
Commonly known as 'xtreme brand', it would save the construction cost by 15 per cent at prevailing prices, compared to the 60-grade rod, they said. They expect that the clients would be able to buy the 500w grade rod at a price, 15 per cent less than 60-grade rod, which cost now around Tk 70,000 per ton.
The real estate companies believe that the 500-grade steel reinforcing bars will usher in a new era for the construction industry.
"The more high quality rod is used in a structure, the less quantity of rod is required per column, column size of high-rise buildings is also reduced," said an engineer.
Tanveerul Haque Probal, President of the Real Estate Housing Association of Bangladesh (REHAB), said the new steel bars would save costs of the construction.
However, he said that the expected positive change in real estate sector would depend on fixation of the price of rod.
"If pricing is reasonable, demand for this high quality rod would automatically go up," he said, adding, that a boom in high rise buildings is likely in the city due to larger floor area ratio, allowed by the recent the building code amendment.
Now rods of 40 and 60 grades are used for construction, while BSRM's manufacturing bar is likely to be 70-grade rod.
The sprawling BSRM factory on 11 acres of land at Latifpur in Faujderhat under Sitakunda upazila. The Tk 3.70 billion re-rolling mill is one of the largest of its kind in South Asia and Bangladesh's largest engineering industry.
Construction of the steel mill was started in 2004 and completed early this year. The unit went into test production on April 1. Now it produces 1,000 tonnes of steel rods per day, on an average.
BSRM steel sources said that the unit would be able to meet one-eighth per cent of the country's total annual demand of around three tonnes. The country's over 250 large and small steel re-rolling mills are mostly located in Chittagong and Dhaka.
They believe that BSRM's annual turnover would exceed Tk 2.0 billion from the present amount of Tk. 9 billion once the new steel mill goes into full production.
In steel business for more than 55 years BSRM is the first ISO 9001:2000 certified reinforcing bars manufacturing company in Bangladesh. BSRM uses prime quality billets as raw material for quality production, said the company sources. The mill, country's first fully automatic integrated plant with the latest laboratory equipments, maintains strict quality control and 100 per cent traceability at every stage of production, they said.
BSRM Steels Ltd, the new giant production facility of Bangladesh Steel Re-rolling Mills (BSRM) Group, has an annual production capacity of 3,75,000 tonnes of steel rods.
Official sources said, the BSRM 500W, the highest quality steel, would make construction stronger, safer, more durable, and also more cost-effective. It's used across the world, they added.
Commonly known as 'xtreme brand', it would save the construction cost by 15 per cent at prevailing prices, compared to the 60-grade rod, they said. They expect that the clients would be able to buy the 500w grade rod at a price, 15 per cent less than 60-grade rod, which cost now around Tk 70,000 per ton.
The real estate companies believe that the 500-grade steel reinforcing bars will usher in a new era for the construction industry.
"The more high quality rod is used in a structure, the less quantity of rod is required per column, column size of high-rise buildings is also reduced," said an engineer.
Tanveerul Haque Probal, President of the Real Estate Housing Association of Bangladesh (REHAB), said the new steel bars would save costs of the construction.
However, he said that the expected positive change in real estate sector would depend on fixation of the price of rod.
"If pricing is reasonable, demand for this high quality rod would automatically go up," he said, adding, that a boom in high rise buildings is likely in the city due to larger floor area ratio, allowed by the recent the building code amendment.
Now rods of 40 and 60 grades are used for construction, while BSRM's manufacturing bar is likely to be 70-grade rod.
The sprawling BSRM factory on 11 acres of land at Latifpur in Faujderhat under Sitakunda upazila. The Tk 3.70 billion re-rolling mill is one of the largest of its kind in South Asia and Bangladesh's largest engineering industry.
Construction of the steel mill was started in 2004 and completed early this year. The unit went into test production on April 1. Now it produces 1,000 tonnes of steel rods per day, on an average.
BSRM steel sources said that the unit would be able to meet one-eighth per cent of the country's total annual demand of around three tonnes. The country's over 250 large and small steel re-rolling mills are mostly located in Chittagong and Dhaka.
They believe that BSRM's annual turnover would exceed Tk 2.0 billion from the present amount of Tk. 9 billion once the new steel mill goes into full production.
In steel business for more than 55 years BSRM is the first ISO 9001:2000 certified reinforcing bars manufacturing company in Bangladesh. BSRM uses prime quality billets as raw material for quality production, said the company sources. The mill, country's first fully automatic integrated plant with the latest laboratory equipments, maintains strict quality control and 100 per cent traceability at every stage of production, they said.