Gas crisis hits DEPZ industries
Monday, 12 April 2010
Jasim Uddin Haroon, back from DEPZ
The industrial units in the country's premier export processing zone are largely affected by severe scarcity of gas that has forced a number of the industrial units to suspend their production during day time, factory owners said Sunday.
The pressure of gas started to decline in the industrial units at Dhaka Export Processing Zone (DEPZ) since September 2009 and it had deteriorated over the past few weeks, they added.
The EPZ's spinning, dyeing and composite knit factories have become the worst victims of the low gas pressure, it was found while visiting the factories.
Currently, the pressure of gas supplied to the zone is remained below 3.0 psi 16 hours a day from 10:00am to 2:00 am. The minimum requirement pressure to run boilers and other machineries is 10 psi.
"How will we be able to run our factories during daytime?" asked Ashraful Hassan, managing director of Grameen Knitwear, one of the leading composite knit plants at the EPZ while explaining his plight to FE.
Mr Ashraful said they are now compelled to operate their plants from 3:00am to 9:00 am every day.
The textiles factories should be in operation round-the-clock to be profitable.
Ashraful Kabir, general manager of DEPZ, told the FE: "We're also frustrated over the fast deterioration of gas pressure though we've met many times with the Petrobangla to overcome the crisis"
He also said: "I don't see any immediate remedy of the crisis."
K. O. Lee, managing director of Daewoo Dyeing Bangladesh Ltd., told the FE: "My production has reduced by more than 70 per cent following the gas crisis."
Daewoo Dyeing has 100,000 pound production capacity a day and is now operating at 30per cent only.
However many factories are now converting their boilers and other machineries to operate by furnace oil or diesel.
"This is increasing our production cost at least by five times following the high cost of furnace oil ," said an official at the Daewoo Bangladesh Spinning Mills. Each litre of furnace oil is Tk 26.
Officials at the Ring Shine, a composite spinning mill at the EPZ, said their products have become costlier compared to the global market as low pressure of gas was decreasing their daily production.
Managing director of Grameen Knit said: "We've substantial orders for knit garments, but are now failing to make timely shipment following the crisis."
He said: "Recently I had to ship one consignment by air. This led to huge financial losses."
The DEPZ is located at Ghanakbari, 35 kilometres north of Dhaka on 143.84 hectres of lands.
The EPZ's investment has drastically fallen over the past eight months of the current fiscal following the crisis, coinciding with the global economic meltdown.
A total of $ 37.26 million were invested during the past eight months in the EPZ leading to a negative growth in its employment.
The industrial units in the country's premier export processing zone are largely affected by severe scarcity of gas that has forced a number of the industrial units to suspend their production during day time, factory owners said Sunday.
The pressure of gas started to decline in the industrial units at Dhaka Export Processing Zone (DEPZ) since September 2009 and it had deteriorated over the past few weeks, they added.
The EPZ's spinning, dyeing and composite knit factories have become the worst victims of the low gas pressure, it was found while visiting the factories.
Currently, the pressure of gas supplied to the zone is remained below 3.0 psi 16 hours a day from 10:00am to 2:00 am. The minimum requirement pressure to run boilers and other machineries is 10 psi.
"How will we be able to run our factories during daytime?" asked Ashraful Hassan, managing director of Grameen Knitwear, one of the leading composite knit plants at the EPZ while explaining his plight to FE.
Mr Ashraful said they are now compelled to operate their plants from 3:00am to 9:00 am every day.
The textiles factories should be in operation round-the-clock to be profitable.
Ashraful Kabir, general manager of DEPZ, told the FE: "We're also frustrated over the fast deterioration of gas pressure though we've met many times with the Petrobangla to overcome the crisis"
He also said: "I don't see any immediate remedy of the crisis."
K. O. Lee, managing director of Daewoo Dyeing Bangladesh Ltd., told the FE: "My production has reduced by more than 70 per cent following the gas crisis."
Daewoo Dyeing has 100,000 pound production capacity a day and is now operating at 30per cent only.
However many factories are now converting their boilers and other machineries to operate by furnace oil or diesel.
"This is increasing our production cost at least by five times following the high cost of furnace oil ," said an official at the Daewoo Bangladesh Spinning Mills. Each litre of furnace oil is Tk 26.
Officials at the Ring Shine, a composite spinning mill at the EPZ, said their products have become costlier compared to the global market as low pressure of gas was decreasing their daily production.
Managing director of Grameen Knit said: "We've substantial orders for knit garments, but are now failing to make timely shipment following the crisis."
He said: "Recently I had to ship one consignment by air. This led to huge financial losses."
The DEPZ is located at Ghanakbari, 35 kilometres north of Dhaka on 143.84 hectres of lands.
The EPZ's investment has drastically fallen over the past eight months of the current fiscal following the crisis, coinciding with the global economic meltdown.
A total of $ 37.26 million were invested during the past eight months in the EPZ leading to a negative growth in its employment.