Mustafa-Hakim Group launches steel mill amid overcapacity in market

Mustafa-Hakim Group, a Chattogram-based conglomerate, has set up a steel mill at Tk1,500 crore at a time when many such factories are running with overcapacity in the market.

United Commercial Bank (UCB) has financed the project that will produce four lakh tonnes of high-powered steel bars annually.

“We have set up the mill with modern German technology,” said Manjur Alam, managing director of Mustafa-Hakim Group, at the launch of the mill on Saturday.

Land Minister Saifuzzaman Chowdhury Javed was present as chief guest while lawmaker Didarul Alam and managing director of United Commercial Bank (UCB) Muhammad Shawkat Jamil and Mustafa-Hakim Group director Mohammad Sarwar Alam were present as special guests on the occasion.

Presently, there are around 40 active steel mills in the country with a combined capacity to produce nearly 10 million tonnes of steel a year against a demand for 8 million tonnes. Abul Khair Steel, GPH Ispat, BSRM and KSRM have over 50% market shares.

“We hope to establish more industries in future to create job opportunities,” said Manjur Alam, adding that the Mustafa-Hakim Group would help the government continue the infrastructural development to fill up its Vision 2041.

The Group has the experience to run a steel mill, Golden Ispat, before besides setting up as many as 16 industrial units Mustafa-Hakim Cement Industry, Golden Bricks and Golden Iron in the port city.

Borhan Uddin, general manager of HM Steel, said the mill would produce a high-graded MS bar with 550-grade capacity, angles, channels, MS rod, etc.

The percentage of steel production in the country has remained downward since the Covid-19 pandemic, he added.

The new project including Golden Ispat will meet 8% of the total demand for steel in the country, Borhan told the Business Insider Bangladesh.

Golden Ispat is now producing two lakh tonnes of construction materials, including MS rod annually, he said.