National Tubes to make foray into metal fabrication
National Tubes is set to erect a steel structure and fabrication unit for Tk 1.33 crore as the 51 per cent government-owned company looks to cash in on the current construction boom surrounding the government's implementation of myriad of development projects.
The pipe manufacturer, which got listed in 1989, informed the Dhaka Stock Exchange (DSE) yesterday. The news sent its stocks up 2.94 per cent to Tk 115.7.
The company deems the new unit will ramp up profits, said Md Saidur Rahman, managing director of National Tubes.
The unit will shape strong mild steel suited to construction work. Fabrication is the creation of metal structures by cutting, bending and assembling processes. It is a value-added process.
About 1,000 tonnes of fabrication work will be done every year by the unit. Some Tk 50 lakh surplus revenue may be logged from the unit in future.
There is a scope for fabrication and galvanising works for the Bangladesh Economic Zones Authority, Export Processing Zones, Bangladesh Power Development Board, Bangladesh Rural Electrification Board, Power Grid Company of Bangladesh, government projects and various government and non-government organisations.
The initial investment for the unit will be Tk 63.65 lakh.
All the money would come from the company's own fund, according to Rahman.
The company has more than Tk 520 crore in reserves and surpluses, DSE data showed.
A top official of the National Tubes said the management is earnestly trying to become a profitable concern.
The state-run pipe manufacturer has been in the losses since the 2016-17 financial year and its sales and production have been steadily declining since the 2013-14 financial year.
In the first half of the current financial year, the company's earnings per share were Tk 0.24, which was Tk 0.83 in the negative year-on-year.
The company's paid-up capital is Tk 34.82 crore. Institutional investors have 20.4 per cent share of National Tubes.
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