Chinese chemical maker rebuffs pandemic fears, wants to invest $300m
Yabang Investment Holdings Group Co Ltd, a concern of Yabang Group of China, has expressed its willingness to invest $300 million in textile and other chemical industries inside Bangabandhu Sheikh Mujib Shilpa Nagar in Chattogram.
This the highest amount of investment proposal received by Bangladesh Economic Zones Authority (Beza) during the pandemic.
Xiaochu Xu, chairman of Yabang Group, placed his proposal and sought 100 acres of developed land under an annual lease agreement yesterday, according to Beza officials.
A master plan was submitted which includes that on bringing about infrastructure development in the project.
They have also submitted the environment management plan to address environmental issues of the project. This will be a project owned 100 per cent by foreigners.
"The ongoing global trade situation is favourable for Bangladesh. And that is why the Chinese businesses are keen to invest in the South Asian nation," said Paban Chowdhury, executive chairman of Beza.
The investment of Yabang Group will help Bangladesh diversify its export basket as well as ensure technology transfer, he said.
"Basically, Yabang Group wants to take advantage of the global trade competitiveness."
"We will sign a deal on land lease agreement with Yabang Group just after Eid-ul-Azha, as they want to complete the investment process rapidly to go into production as soon as possible," he said.
Foreign investment will come in fast to Bangladesh if responsible local organisations come forward to take advantage of the existing favourable global business climate, he said.
Earlier on June 5, Xu met with Bangladesh's Ambassador in China Mahbub Uz Zaman at his office in Beijing and discussed investment plans in Bangladesh. If things go according to plan, the initial investment may hit around $1 billion and the focus will be given on printing and dyeing, pharmaceuticals and other chemical plants.
The investment holdings group is one of three leading companies in the chemical sector and among 500 top listed companies in China. It has more than 15,000 employees.
Its business covers dye, coating, pigment, medicine, veterinary, pesticide, photovoltaic, logistics, finance and real estate industries. It has more than 60 subsidiary (branch) companies.
The group's annual sales volume exceeds $10 billion with a profit of $500 million.