Srihatta Economic Zone to go into operation next year

Production at Srihatta Economic Zone at Sherpur in Moulvibazar is likely to begin next year as construction works of four industrial units there are in full swing.

Works of the four units began in April 2020 at the economic zone beside Dhaka-Sylhet Highway, some 55 kilometres off Sylhet airport. The units are — Ayesha Clothing and Aswad Composite, two concerns of Palmal Group, Double Glazing Limited and Greatwall Ceramics.

Bangladesh Economic Zone Authority has completed the allocation of 231 acres of land at the economic zone to five companies who would set up various industries there. Established on 352 acres of land, 112 acres would be used for constructing water reservoir. The foundation stone of the economic zone was laid in 2016.

The Srihatta Economic Zone is part of the government’s plan to set up 100 economic zones across the country. Of the 100 economic zones, development works are underway at 26 zones.

Five companies are investing around $1.3 billion in this economic zone. DBL Groups is investing $1.18 billion. Its 20 factories would employ 39,000 people. Palmal Group is investing $80.48 million and among them $50.48 million for Ayesha Clothing and $30 million for Aswad Composite. Greatwall Ceramics is investing $32.5 million, Double Glazing is investing $0.8 million, and Abdul Monem Group $0.5 million.

DBL Group got the most land in the economic zone — 170 acres. They have completed land development works on the undeveloped land. The remaining four companies got developed land. Greatwall Ceramics got 25 acres, Abdul Monem Group got 19 acres, Palmal Group got 14 acres where they are setting up Aswad Composite Mills and Ayesha Clothing, Double Glazing, owned by non-resident Bangladeshis got three acres of land.

Utility services like gas, electricity, and water have already been provided and 85 per cent of works of constructing boundary walls and administrative building have been completed. Construction of internal roads, the drainage system is underway.

Shaikh Yusuf Harun, executive chairman of BEZA, told The Business Post that the economic zone was smaller but it drew big investments. He said the economic zone would ensure the employment of 50 thousand people.

Yusuf hoped that production in the four factories would begin next year. Three of the factories have visible development in construction works and the remaining one would be constructed soon, he said.

The entrepreneurs at the economic zone are hopeful to export their products to meet local demands.

Monojaha Polly Islam, director of Double Glazing Limited, said they had come with different types of window or door fabrication which is different from now popular Thai glass. “Double glazing is completely different from Thai glass. This special type of glass is being made in Sylhet since 2008 and there will large scale production after the factory starts.”

She said double glazing glass was a different technology and it would be suitable for various uses in modern buildings. “If this investment becomes successful, the expatriate entrepreneurs will come up with bigger investment plans,” she added.

Aminul Islam, manager of Greatwall Ceramics, said the investment was being made to meet the demand for tiles in the country as well as to export. “Our factory construction works already began and we have plans to go into production as soon as possible,” he added.

KM Mahtab Uddin, director of the Palmal Group, said that Palmal began construction works of factories at the Srihatta Economic Zone first and they would go into production by next year with a capacity of 50 tonnes of knit fabrics a day. These 100 per cent export-oriented factories would employ 5000 people.

With a large investment, DBL Group will set up several garments, textiles and ceramic factories. The group plans to set up 20 factories.

Abdul Monem Group is also planning to start construction of a ceramic factory with a large investment.