Ceramic factories struggling amid gas crisis

The country's ceramic manufacturing factories in key areas like Dhaka, Gazipur and Narsingdi have been struggling to continue production as they have been suffering from a severe gas crisis in recent times.

According to industry people's estimation, nearly 25 factories in the region have been suffering a production loss of estimated Tk 200 million every day for around the last one month due to the supply crunch of natural gas, one of the key ingredients of the ceramic products.
They also said the local manufacturers are afraid of losing competitiveness in both local and international markets unless the government takes immediate actions.
Keeping this in view, the apex trade body of ceramic manufacturers have urged the power, energy and mineral resources ministry to take necessary action so that the factories get uninterrupted gas supply.
Factories in Mirpur-12, Savar, Dhamrai of Dhaka district, Tongi, Kashimpur, Bhabanipur, Bhawal, Mirzapur, Sreepur, Mawna of Gazipur, Panchdona of Narsingdi and Bhaluka and Trishal areas of Mymensingh have been facing severe gas crisis, according the request letter sent by the Bangladesh Ceramic Manufacturers & Exporters Association (BCMEA).
"The production of ceramic tableware, tiles, sanitary ware and ceramic bricks in 22-25 factories is being disrupted due to severe gas shortages," the BCMEA said.

Ceramic goods-manufacturing units require gas supply pressure at 15 psi (pounds per square inch), whereas the pressure in those areas fluctuate between three and zero only.
"In consequence, the production loss in those areas is estimated at Tk 200 million every day," he said.
Ceramic is a gas dependent manufacturing industry as natural gas constitutes 10 to 12 per cent of total production cost.
Kilns in the ceramic industry need 24-hour uninterrupted gas supply to burn the products at 1200 centigrade at the desired PSI.
"Whenever the required pressure slides down, the incomplete products inside a kiln become wastage, even a kiln needs 48 to 72 hours to resume production in full swing after a halt," the BCMEA said, adding that sometimes an industry owner has to encounter severe trouble due to inoperative machinery.
This disruption could also lead to some entrepreneurs becoming bank defaulters as well as a conflicting situation between lenders and industry. This could also result in an increased number of cases at the financial institutions.
Contacted, BCMEA General Secretary Irfan Uddin told the FE that the northern region of Dhaka accommodates the highest number of factories, so they face the severe gas crisis.
"The situation in some other parts, including Narayanganj, is also not favourable," he said.
The government increased the gas price per cubic meter to Tk 30 from Tk 13, causing a problem for the gas-based industry, he said.
"We had to accept the higher tariff with an expectation that we would get uninterrupted supply," he said with lamentation. Replying to a query on the scope of using cylinder gas, he said this is not viable.
"This will lead to a hike in the prices of finished goods which is not feasible as local manufacturers sustain amid a tight competition from the imported ceramic ware," he said.
According to sector insiders, there are around 70 ceramic factories across the country. Of them, a handful in Habiganj and Bhola get gas at stable pressure.
With the market size of Tk 80 billion and investment of Tk 170 billion , the local ceramic sector has created around 0.5 million direct and indirect jobs.
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