Meghna to build PVC plant at its economic zone
Meghna Group of Industries will set up an import-substitute PVC manufacturing plant in its economic zone in Narayanganj with funds of $360 million or about Tk 2,822 crore from a Chinese firm.
Chongqing Minmetal and Machinery Import and Export Co has already sanctioned the fund to help set up the unit -- Meghna PVC Plant -- in Meghna Economic Zone.
PVC, which stands for polyvinyl chloride, is a petroleum byproduct and the raw material to produce different types of plastic products such as pipes, doors and hangers that are widely used in Bangladesh.
Bangladesh imports around two lakh tonnes of PVC a year from Vietnam, Thailand, China and Taiwan to make plastic products, said Mostafa Kamal, chairman of Meghna Group.
Bangladesh Economic Zones Authority (Beza) yesterday awarded Meghna Group a final licence for its economic zone. This was the first licence awarded by Beza to a private sector economic zone.
It will be one of the two private economic zones being developed by the conglomerate at Sonargaon, Narayanganj.
Kamal said they are also investing around Tk 1,700 crore to set up four industrial units in the zone -- Tk 800 crore in Meghna Pulp and Paper Mills, Tk 320 crore in MPP Power Plant, Tk 300 crore in Meghna Edible Oil Refinery and Tk 250 crore in Sonargaon Flour Mills.
“Construction work of these units is going on in full swing and we expect to start trial production by this year,” he said, adding that they will allocate two industrial plots to Chinese entrepreneurs and four to Bangladeshis.
Meghna Economic Zone is situated on 245 acres of land on the bank of the Meghna river in Sonargaon, close to the Dhaka-Chittagong highway.
The economic zone is suitable for industries like pulp and paper, tissue paper, sanitary napkin, baby diaper, PVC plant, oil refinery, flour mill, power plant, petrochemicals, ceramics and LPG plant.
The work of another zone -- Meghna Industrial Economic Zone -- that is being developed on around 100 acres of land is going on as well.
“The economic zones will create about 30,000 jobs at various levels in the next five years,” said Kamal.
An economic zone is a designated area in a country with special economic regulations that differ from the rest of the country. An entrepreneur can enjoy various benefits, including tax incentives, from the authorities by setting up an industrial unit in an economic zone.
Beza Executive Chairman Paban Chowdhury said the Meghna Group's initiative to set up the PVC plant will bring massive changes in the plastic industry.
“We have selected 77 sites and acquired 30,000 acres of land so far to establish economic zones where entrepreneurs can set up their factories for the next 50 years,” Chowdhury said.
Beza plans to develop 100 economic zones by 2030 on 75,000 acres to create jobs for one crore people and produce goods and services worth $40 billion.