Khulna Hardboard Mill limping with losses
Thursday, 11 November 2010
Our Correspondent
KHULNA, Nov 10: Khulna Hardboard Mill is incurring heavy losses every year due to price hike of furnace oil and raw materials, frequent load shedding and crisis of running capital. The mill has incurred a loss of about Tk 35 million last financial year. The mill cannot give standard quality output due to the absence of BMRE for a long time.
Mill sources said that the mill under control BCIC was closed in December 15, 2002. Later it was resumed in September 14, 2005. At present 23 officers, 71 employees and 102 workers are working in this mill.
Sources said that the mill produced 1,24,5700 square feet hard board worth Tk 54 million and lost Tk 1.3 million in 2005-2006 financial year. 1,09,6500 square feet hard board worth Tk 78 million and lost Tk 13.5 million in 2006-2007 financial year. 1,22,7000 square feet worth Tk 76 million and lost Tk 8.2 million in 2007-2008 financial year. 95, 47,000 square feet worth Tk 70.1 million and lost 31 million in 2008-2009 financial year and at last in 2009-2010 financial year produced 94, 32,000 square feet worth Tk 74.7 million and lost Tk 34.6 million.
Established in 1966 with an annual production capacity of 2.78 million squiare metres, the hardboard mill was shutdown primarily because of poor production capacity triggered by short supply of its raw material from the Sundarbans forest.
The products of the KHM also faced a tough competition in the market as both the quality and prices were comparatively higher than those of imported ones.
Engineer Habibur Rahman, Managing Director, informed the Financial Express that the mill authority has asked for Tk 100 million (10 crore) to the BCIC for smooth functioning. He expected that the mill will go into full operation soon after sanctioning the fund.
KHULNA, Nov 10: Khulna Hardboard Mill is incurring heavy losses every year due to price hike of furnace oil and raw materials, frequent load shedding and crisis of running capital. The mill has incurred a loss of about Tk 35 million last financial year. The mill cannot give standard quality output due to the absence of BMRE for a long time.
Mill sources said that the mill under control BCIC was closed in December 15, 2002. Later it was resumed in September 14, 2005. At present 23 officers, 71 employees and 102 workers are working in this mill.
Sources said that the mill produced 1,24,5700 square feet hard board worth Tk 54 million and lost Tk 1.3 million in 2005-2006 financial year. 1,09,6500 square feet hard board worth Tk 78 million and lost Tk 13.5 million in 2006-2007 financial year. 1,22,7000 square feet worth Tk 76 million and lost Tk 8.2 million in 2007-2008 financial year. 95, 47,000 square feet worth Tk 70.1 million and lost 31 million in 2008-2009 financial year and at last in 2009-2010 financial year produced 94, 32,000 square feet worth Tk 74.7 million and lost Tk 34.6 million.
Established in 1966 with an annual production capacity of 2.78 million squiare metres, the hardboard mill was shutdown primarily because of poor production capacity triggered by short supply of its raw material from the Sundarbans forest.
The products of the KHM also faced a tough competition in the market as both the quality and prices were comparatively higher than those of imported ones.
Engineer Habibur Rahman, Managing Director, informed the Financial Express that the mill authority has asked for Tk 100 million (10 crore) to the BCIC for smooth functioning. He expected that the mill will go into full operation soon after sanctioning the fund.