Nippon Steel and Sumitomo Opens New Plant in Chittagong

Japanese corporation Nippon Steel and Sumitomo Metal inaugurated a plant in Bangladesh to capture the burgeoning domestic market. Construction of the Chittagong plant began in December 2013 as a 50/50 joint venture with local McDonald Steel Building Products Limited.

The new plant will supply materials for the production of metal structures for shipbuilding and construction companies. Nippon and McDonald Steel Industries Limited will begin commercial production at the end of September with an initial annual capacity of 15,000 tons. These two companies will provide quality products at a lower price in the country. Japan's largest steelmaker decided to enter the market as the owners of a destroyed garment factory begin assembling buildings from prefabricated steel structures.

Currently, the country's annual demand for prefabricated steel buildings has grown steadily by over 35 percent over the past few years. The country has a growing steel sector, but almost all companies import steel, making the process costly and labor intensive. And the new plant will provide the same products at affordable prices without import costs.

The plant will process a wide range of steel products such as electrical steel, sheet metal, pipes and tubes, rods and fittings, cast iron, ferroalloys and others. The products will be shipped directly from the Japan plant and processed at the Chittagong plant and then transported to customers.