Cement industry ripe for foreign investment: Barua
Bangladesh cement industry has potential to attract foreign investment owing to the tremendous growth shown over the last five years, Industries Minister Dilip Barua said yesterday.
“We have favorable investment climate. As a result, many local and foreign investment projects have been taken up -- and they are being lauded by many around the world.”
Barua's comments came at the opening of a three-day conference on the cement industry, organised by Intercem in association with The Bangladesh Cement Manufacturers Association at the capital's Pan Pacific Sonargaon Hotel.
The conference is attended by cement manufacturers from a total of 30 countries -- including the USA, Germany, China, India, Pakistan, Turkey, Japan, Sri Lanka, Iran, United Arab Emirates and Singapore.
The industry's output at present is 22 million metric tonnes, when its actual capacity is 15-17 million metric tonnes, he said.
Ikram Ahmed, vice chairman of Seven Circle BD Ltd said: “Our per capita cement consumption still remains poor, only 83kg compared with the world average of 430 kg, meaning there is a strong opportunity for growth of Bangladesh's cement industry.”
Cement consumption per capita in India is 174kg, 131 kg in Pakistan, 178 kg in Sri Lanka and 408 kg in Pakistan.
“We have investment-friendly financial and legal systems, which would support the foreign companies,” said Ahmed, while adding that Bangladesh has a good environment thanks to its low carbon production.
Shah Cement is the market leader with 16 percent of the market share, followed by the multinational Heidelberg at 10 percent, Meghna and Seven Circle 8 at 8 percent each and Holcim at 7 percent, as per IDLC Investment.