Berger to set up second metal container plant
Jenson & Nicholson (Bangladesh), a wholly owned subsidiary of Berger Paints Bangladesh, plans to invest Tk 91.48 crore to set up its second unit to produce metal containers at Savar to meet the growing demand.
The project is expected to be completed in 2022 and the company disclosed the info yesterday in a post on the Dhaka Stock Exchange (DSE) website.
The company has been producing tin-containers and prints on tin sheets since 1995.
For the last few years, it has been providing metal container to Nestle, Aarong and some other lubricants companies along with Berger Paints Bangladesh from its Chattogram plant.
A large volume of the containers produced by Jenson & Nicholson is consumed by the Savar plant of Berger, said Khandker Abu Jafar Sadique, company secretary of Berger Paints Bangladesh.
"So the decision to establish another container unit was taken to cater for its growing demand as well as to ensure its smooth supply."
The subsidiary has a huge amount of retained earnings, where the necessary fund to set up the plant will come from, he added. The multinational paint maker announced its second quarter earnings. Its consolidated earnings per share (EPS) stood at Tk 14.26 for July-September quarter, up from Tk 9.49 in the same period the previous year.
"Actually, our company absorbed the main impact of the Covid-19 outbreak in the first quarter (April-June) when the government-announced general holiday was effective," said Sadique.
In the first quarter, the company's EPS hit Tk 2.32, down from Tk 11.12 during the same period the previous year.
"Our company started recovering in the second quarter with the resumption of construction works," he added.
Berger Paints Bangladesh has a paid-up capital of Tk 46 crore and has a reserve of Tk 900 crore, according to the DSE data.
Its stock rose 2.82 per cent to Tk 1,360 yesterday compared to the previous day.
Berger Paints Bangladesh has two other subsidiaries named Berger Becker Bangladesh and Berger Fosroc and it holds 49 per cent stakes in the first company and 50 per cent in the second.
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