The state-run listed company Eastern Cables Ltd (ECL) signed a $4.2-million deemed export agreement with a leading Chinese corporation on Monday.
Under the deal signed at the Bangladesh Steel and Engineering Corporation (BSEC), the cable-maker will supply 4,000 KM AAC WASP Conductor to China National Technical Import and Export Corporation (CNTIEC).
ECL managing director Abul Kalam Azad and CNTIEC representative Zhang Zhilong (Balandy) signed the agreement on behalf of their respective sides in the presence of BSEC chairman Shahidul Hoque Bhuia.
Sources say the Chinese corporation last year imported conductors worth $0.5 million from ECL and supplied to Dhaka Power Distribution Company for a project.
The BSEC owns Eastern Cables Ltd.
Hailing the moment, Mr Bhuia terms China a major development partner of Bangladesh that has been playing an important role in the country's overall progress.
"I hope the Chinese corporation will further expand such exports in the coming days," he says.
Talking to the FE, Mr Azad says eastern Cables resumed export after a long break in 2021 through selling products to the Chinese corporation.
"Today, it (CNTIEC) signed another deemed export agreement and this will help brand our products globally. Now, we're looking for more markets with more diversified products," he adds.
The Eastern Cables Ltd was listed with the Dhaka Stock Exchange (DSE) in 1986.
As the news of the deal circulated, ECL share prices jumped 9.94 per cent to close at Tk 161.50 on Monday.
Its shares have been traded between Tk 115.60 and Tk 174.80 in the last one year.
ECL reported a loss of Tk 2.13 per share in nine months for July 2021-March 2022 as against loss of Tk 4.51 per share in the same period last year.
The company has declared no dividend for the past two years-2020 and 2021-as it incurred losses of Tk 6.46 per share and Tk 4.68 per share respectively.
It paid-up capital is Tk 264 million, authorised capital Tk 600 million and the total number of securities 26.40 million.
DSE shows sponsor-directors own a 17.17-per cent stake in ECL, government 51 per cent, institutional investors 18.21 per cent and the public 13.02 per cent as on 31 May 2022.
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