Mir Akhter Hossain to set up steel plant

Mir Akhter Hossain, one of the country's biggest construction companies, is going to establish a steel manufacturing plant to meet its own demand for the key raw material in the construction of buildings and infrastructure such as bridges.

The company directors decided to form a subsidiary called Mir Steel Mills, read a Dhaka Stock Exchange (DSE) website post yesterday.

The company buys a huge amount of rod from steel manufacturers every year and now it has become one of the country's biggest consumers, said Company Secretary Md Masbauhs Sunnah.

So, the board decided to manufacture steel through its own plant, he said.

The idea is to have something like a composite company, itself producing almost all its raw materials, he said, adding Mir Akhter Hossain has a cement company and a ceramic company to cater to its own demand.

"Now, the board has realised that the time has come to produce rod. It will strengthen our run in the construction sector," he said.

If it has any surplus rod, it will be sold in the open market. The company could even go for purchasing an existing steel manufacturing plant but the investment amount has not been set yet.

After establishing the rod manufacturing plant, the company will not need to go to others for basic construction materials except for sand and stone, Sunnah added.

Established in 1980, Mir Akhter Hossain had a revenue of Tk 324 crore at the end of June 30, 2021, according to its audited financial report for 2020-21.

The decision to establish the steel plant comes at a time when the price of rod is soaring.

The price of steel in Bangladesh has jumped to more than Tk 90,000 per tonne in a ripple effect of rising global demand for scrap and a recent hike in local fuel prices.

The construction companies have been impacted on and off due to the huge shifts in rod prices.

Stocks of Mir Akhter Hossain rose 1 per cent to Tk 62.10 yesterday at the DSE. Its paid-up capital was Tk 120 crore.

The construction company has retained earnings of Tk 319 crore, according to the financial report.

Its profits rose to Tk 45 crore in 2020-21 while it was Tk 37 crore a year earlier.