Al-Falah Steel targets to increase annual 216,000 tonnes of MS Rod production by 2025

Al-Falah Steel & Re-Rolling Mills, a sister concern of SS Steel, has set its target to increase its production triple time within the next two years in a bid to meet increased demand for quality billets.

The company has already increased its production capacity from 64,800 tonnes to 151,200 tonnes of MS billet with a plan to increase the total combined capacity of 216,000 tonnes of MS Rod annually by 2025.

SS Steel is one of the reputed steel manufacturing companies in Bangladesh and it has been running the steel production and sales business for a long. SS Steel acquired the Al-Falah Steel & Re-Rolling Mills in March 2022 when the factory was about to close due to a financial crisis.

The company's production capacity was only 64,800 tonnes of MS billet per year and had only 360 decimals of land when it was acquired by SS Steel.

After buying equity shares, SS Steel has taken the initiative to increase the production of Al-Falah Steel, a Narayangonj-based steel plant, with an investment of around Tk 184.14 crore.

“To increase the company's production, we imported a new machine with a production capacity of 86,400 tonnes per year. To set up the machine, we bought 240 decimal of land, increased electricity power and set up a new electric line with a 6-megawatt power capacity,” said Sayeed Rezaraj Ahmmad, director of SS Steel and nominated director of Al-Falah Steel.

Al-Falah Steel plant, with more than 250 employees, is now producing high-quality billets and sells its product under its renowned brand name, he added.

As part of the steel plant inauguration celebration, the company arranged a factory visit in Narayangonj for a group of media houses on October 14, 2023.

During the visit, a group of journalists observed the total steel manufacturing process.

Md. Mostafizur Rahman Sazzad, company secretary of SS Steel and Al Falah Steel & Re-Rolling Mills Ltd and Shaheed Hossain Tanjil, executive assistant to the chairman of SS Steel were also present at the time.

According to the Bangladesh Steel Manufacturers Association and entrepreneurs, even 10 years ago, the country was producing 2.5 lakh tonnes of MS Rod annually.

At present, according to the demand, the average annual production and marketing of steel stands at around 60 lakh tonnes.

Now the production capacity of the factory is being increased by 1 crore tonnes by 2030.

A total of 40 modern and 150 traditional factories are producing steel in the country at present.

The current average per capita steel consumption is estimated at 45kg in Bangladesh. In 2030, the demand is expected to increase to more than 100kg per capita.

The implementation of the country’s several mega projects, development of economic zones and increased construction of buildings in the village level with expatriate income are the main reasons for the growth of the steel sector in Bangladesh.

Steel-producing companies are focusing on increasing production by expanding modern technology and factories.

The steel sector is escalating by relying on the investment of the private sector diversifying products and transforming production.