CHATTOGRAM, Oct 14: GPH Ispat Limited, a leading steel maker in the country, is going to ship the prime quality steel billets to the China main port, Jiangyin -Xiamen, next month.
This is the first time that high quality steel billets will be exported to China from Bangladesh.
Sources said, the GPH Ispat Ltd signed a contract with the China main port to export 25,000 metric tonnes (MT) of Quantum EAF route billets last month. The contract value of the total export is over US $10.01 million ($10,175,000). The billets will be shipped from Chittagong Port, Bangladesh's prime seaport, in the first week of November next.
GPH Additional Managing Director Mohammad Almas Shimul said, "We have already signed a contract with the China main port known as Jiangyin/Xiamen port to export 160x160x12,000 mm prime quality steel billets. Our Quantum EAF route Billet has very good demand internationally. We will complete the shipment in the first week of next month."
He said that they will seek cash incentive from the government for the export.
"We are doing the biggest shipment (of steel) in the history of Bangladesh in terms of value. If this sector gets policy support from the government as other export sectors do, we will continue (to export) in future too," he said.
"This is the first time billet (is being) exported in bulk from Bangladesh. We exported billets in 2008 which was 2,500 MT only and also initiated (steel) rod and billets export to India in fiscal year 2010-11," he mentioned.
He said GPH is a capital intensive industry and the value addition of the industry is more than 50 per cent locally.
"We use 50 per cent to 70 per cent imported raw materials and the rest 30-50 per cent raw materials are collected through local sources. We have the target to export $70 million to $100 million in fiscal year 2020-21 which will increase in the near future. Other manufacturers will come forward for export, if they can ensure the international quality like GPH," he stated.
He said they were the first in Asia and second in the globe to use German technology.
"Our plant has the capacity to produce more than one million metric tonnes. Power consumption is 50% lower than induction furnaces and 30% lower than traditional EAF. Gas-based reheating furnaces are not used in the rolling process. To ensure the highest quality products, the mill is able to produce up to class 3 grade product which ensures up to 790 MPA by quenching and class 4 grade product which ensures maximum 980 MPA by micro alloying," he added.
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