Clinker production to create new dimension in Bangladesh market
Sunday, 16 September 2007
FE Report
Niloy Cement Clinkerisation Industries Ltd is expected to produce 70,000 tonnes of clinker annually, first of its kind in the country's private sector, at its new plant factory at Baniargati in Jessore district.
"We have formally launched our production Sunday last and our new venture cost Tk 200 million," Nitol-Niloy Group chairman Abdul Matlub Ahmad told the FE.
The clinker production by the company will hopefully create a new dimension in Bangladesh market as 38 out of 68 cement factories have remained out of production due to lack of clinker.
"We had a dream to produce clinkers in Bangladesh to save valuable foreign exchange since 2000. It has now come true due to a long effort," Matlub said.
The first ever private sector plant producing cement clinker, a key ingredient to produce cement, ushered in a new era of private investment in the area of building materials.
Clinker is a blend of the basic raw materials used in cement production, and at a later stage is grounded and mixed with additional ingredients to form a powder. Currently, clinker is mainly imported from Indonesia, China and Thailand.
Industries Adviser Geeteara Safiya Choudhury inaugurated the Niloy Cement Clinkerisation Industries Ltd in Jessore as the chief guest Sunday last.
Meanwhile, the news of clinker manufacturing triggered a share price hike of Niloy Cement since Sunday last on the Dhaka Stock Exchange (DSE).
Per share of the Z-category company surged to Tk 238.25 Tuesday which was only Tk 113.25 on August 29 last.
On Sunday, the Niloy Cement price gained 22.01 per cent to Tk 148.25 per share against the face value of Tk 100. On Monday it further surged by 50.75 per cent to Tk 223.50 and Tuesday it jumped 6.59 per cent to Tk 238.25.
Abdul Matlub Ahmad said the country will be able to satisfy the need for clinker needs domestically if the government opens up its vast limestone reserve at Sunamgonj and coal reserve across the northern region to the private sector.
He said the prices of clinker as well as freight charges are going up day-by-day, a trend that has encouraged him to set up a clinker factory in the country. "Establishing the basic industry for cement will make the sector self-sufficient and help add more value," he added.
Matlub urged the government to allow entrepreneurs to import clinker raw materials under a bonded facility to take advantage of the opportunity offered to export cement to the Indian market duty-free.
The Nitol-Niloy Group entered the cement business in the early 1990.
"We first established three units in the grey cement plant and later two white cement grinding plants in the country over the period," Matlub said.
The grey cement and white cement production capacity of the Nitol units per year are 300,000 tonnes and 60,000 tonnes respectively.
The country has 68 cement factories with a total production capacity of around 20 million tonnes annually. The country's annual demand is only 8.0 million tonnes.
Entrepreneurs established the cement companies eying the huge Indian market, mainly in the north-east India's seven states where demand for cement is on the rise.
Bangladesh earned $3.6 million through exporting cement in the last fiscal year, but industry experts say the export can be increased manifold in the near future.
Niloy Cement Clinkerisation Industries Ltd is expected to produce 70,000 tonnes of clinker annually, first of its kind in the country's private sector, at its new plant factory at Baniargati in Jessore district.
"We have formally launched our production Sunday last and our new venture cost Tk 200 million," Nitol-Niloy Group chairman Abdul Matlub Ahmad told the FE.
The clinker production by the company will hopefully create a new dimension in Bangladesh market as 38 out of 68 cement factories have remained out of production due to lack of clinker.
"We had a dream to produce clinkers in Bangladesh to save valuable foreign exchange since 2000. It has now come true due to a long effort," Matlub said.
The first ever private sector plant producing cement clinker, a key ingredient to produce cement, ushered in a new era of private investment in the area of building materials.
Clinker is a blend of the basic raw materials used in cement production, and at a later stage is grounded and mixed with additional ingredients to form a powder. Currently, clinker is mainly imported from Indonesia, China and Thailand.
Industries Adviser Geeteara Safiya Choudhury inaugurated the Niloy Cement Clinkerisation Industries Ltd in Jessore as the chief guest Sunday last.
Meanwhile, the news of clinker manufacturing triggered a share price hike of Niloy Cement since Sunday last on the Dhaka Stock Exchange (DSE).
Per share of the Z-category company surged to Tk 238.25 Tuesday which was only Tk 113.25 on August 29 last.
On Sunday, the Niloy Cement price gained 22.01 per cent to Tk 148.25 per share against the face value of Tk 100. On Monday it further surged by 50.75 per cent to Tk 223.50 and Tuesday it jumped 6.59 per cent to Tk 238.25.
Abdul Matlub Ahmad said the country will be able to satisfy the need for clinker needs domestically if the government opens up its vast limestone reserve at Sunamgonj and coal reserve across the northern region to the private sector.
He said the prices of clinker as well as freight charges are going up day-by-day, a trend that has encouraged him to set up a clinker factory in the country. "Establishing the basic industry for cement will make the sector self-sufficient and help add more value," he added.
Matlub urged the government to allow entrepreneurs to import clinker raw materials under a bonded facility to take advantage of the opportunity offered to export cement to the Indian market duty-free.
The Nitol-Niloy Group entered the cement business in the early 1990.
"We first established three units in the grey cement plant and later two white cement grinding plants in the country over the period," Matlub said.
The grey cement and white cement production capacity of the Nitol units per year are 300,000 tonnes and 60,000 tonnes respectively.
The country has 68 cement factories with a total production capacity of around 20 million tonnes annually. The country's annual demand is only 8.0 million tonnes.
Entrepreneurs established the cement companies eying the huge Indian market, mainly in the north-east India's seven states where demand for cement is on the rise.
Bangladesh earned $3.6 million through exporting cement in the last fiscal year, but industry experts say the export can be increased manifold in the near future.