Pre-fabricated steel industry loses Tk 4 billion

The pre-fabricated steel building industry has suffered a significant financial loss worth Tk 4 billion due to the impact of the Novel Coronavirus across the country.  

The industry incurred the loss due mainly to raw materials shipment termination by China, the prime manufacturers and exporters of pre-fabricated steel, said a recent press release of the Steel Building Manufacturers’ Association (SBMA) of Bangladesh.

General Secretary of SBMA, Rashed Khan, said the pre-fabricated steel building industry, known as the ‘firehouse’ of the housing sector, is on the verge of collapse today due to global Coronavirus pandemic.

He said around 230 pre-fabricated steel building plants across the country might face a colossal loss of Tk 10,000 crore by the end of June, this year.

Khan said the industry has employed about two lakh people directly and one more lakh indirectly. “In the current situation, both the permanent and temporary workers and employees will be deprived of employment benefits.” 

Pre-fabricated steel building industries are currently facing a very critical situation as the existing factories, government's Cyclone Shelter Centers and warehouse construction activities are completely closed. Some of the factories went into lockdown indefinitely, claimed Khan.

He said due to lack of raw materials, the companies are not able to pay various bills on time. As a result, payments of bank installments, adjustment of the deals, payment of wages to the workers, and utility bills could not be paid. The General Secretary of SBMA thanked Prime Minister Sheikh Hasina for her timely stimulus packages.

Khan fears that if such conditions continue, the pre-fabricated steel building industries will not be able to carry out their operational activities. 

The pre-fabricated steel building industry, said he, is one of the key players in implementing the government’s Vision 2021 with a view to building digital Bangladesh. 

Without the pre-fabricated steel building industry, development and industrialization cannot occur, he said.

In order to overcome this crisis, SBMA urged the Prime Minister, Finance Minister, Commerce Minister and Industries Minister to intervene with special funds.

Khan also drew the attention of the Finance Minister to waive 8 percent advanced tax imposed on the tariffs while importing pre-fabricated steel building materials.

/teb