SS Steel Limited, a listed steel manufacturer in Bangladesh, is set to take over the fixed assets of both Super Steel Limited and Peninsula Steel Mills Limited located at Sitakunda Kadamrasul in Chattogram, as part of its business expansion, press release said Monday.
This acquisition is part of the company’s commitment to enhancing production capacity, and it will result in an additional yearly capacity of 62,400 tonne MS rod. With this expansion, the accumulated yearly capacity is expected to reach approximately 442,800 tonne MS rod.
To finance this strategic move, the invested amount will be sourced from the company’s retained earnings and, in part, from financial institutions and banks through the company, according to the disclosure.
SS Steel Limited, which started its journey in 2001, is producing MS billet and MS rod from raw material scrap to finished goods. Over the years, this company’s products have been chosen solely for building major national landmarks and infrastructures.
Within just three years, SS Steel is going to make its third steel plant related acquisition with the buyout of the fixed assets of Super and Peninsula Steel in a bid to increase its production capacity.
“As part of our sustainable business plan, we are focusing on increasing our production capacity. In this regard, we have found that Super & Peninsula Steel Limited will be the right choice for us as it has a ready factory setup and great potential. So, our board of directors has decided to take over their fixed assets,” said Javed Opgenhaffen, Chairman of SS Steel Limited.
“Hopefully this initiative will enhance our competitive edge as we can quickly operationalize the plant and create value for the company and customers,” he added.
Steel-producing companies are focusing on increasing production by expanding modern technology and factories. The implementation of mega projects, the development of economic zones, and the increase in the construction of buildings in villages with expatriate income have been the main reasons for the growth of the steel sector in Bangladesh.
