Bepza Economic Zone: Three firms gear up for production

Three companies in the Bangladesh Export Processing Zone Authority (Bepza) Economic Zone, established in the Bangabandhu Sheikh Mujib Shilpa Nagar in Chattogram, are gearing up to initiate production this month.

Fengqun Composite Material Co (BD) Ltd, a Chinese enterprise, is among the three firms poised to commence manufacturing operations. 

With an investment target of $2.2 million, the company will focus on producing a range of items, including shoe accessories and packaging materials such as duct tape, cartons, paperboard boxes, inner boxes, corrugated boxes, rigid boxes, foil sealed bags, and chipboard packing. 

Fengqun began construction work in April 2022.

The other two companies, KPST Shoes (BD) Co Ltd and Kiaxi Lingerie Bangladesh Co Ltd, also of Chinese origin, have set investment goals of $8.07 million and $60.85 million respectively for their operations within the economic zone. 

KPST Shoes intends to manufacture shoes and accessories, while Kiaxi Lingerie will focus on the production of garments.

Engineer Mohammad Anamul Haque, the project director of Bepza Economic Zone, told The Business Standard, "The companies are ready for going into production. They have already started trial production. The two companies have received permanent customs bond licences, and the other is awaiting this month. We expect that they will go into production later this month."

So far 23 companies got the allotment in the economic zone. 

Of them, 17 are foreign-owned, two joint ventures, and four are local firms. They have put forth an investment proposal of $520.26 million in total with proposed employment of 86,525 people. 

The zone, expected to draw approximately $2.70 billion in foreign direct investments (FDI) once it is fully operational, has been established on 1,138.55 acres of land in the Bangabandhu Sheikh Mujib Shilpa Nagar with 539 industrial plots. Of them, 132 plots have so far been allocated to the 23 companies.

Bepza officials say more than 100 companies have applied for industrial plot allocations within the Bepza Economic Zone. As of now, 23 companies have been granted plots, while the remaining applications are under review. 

These companies are expected to contribute to the production of diverse goods, including shoe accessories, packaging materials, finished lubricants, camping equipment, outdoor products, cashew nut processing, tents, apparel, camping equipment, garments accessories, and paper conversion, among others.

According to Bepza Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman, "Bepza evaluates several things including proposed investments, employment opportunities, export potential, as well as production factors such as product types, whether the production process will leave any negative impact on the environment, and how much electricity, water, and gas will be required, before approving any application. Product diversification as well as high-end and tech-based products are being priorities at the economic zone." 

Bepza officials say approximately 53.37% of the total 1,138.55-acre land within the economic zone will remain vacant. Unused areas outside the plot boundaries will be utilised for infrastructure development, including roads, drains, footpaths, green spaces, a 45-acre central reservoir, and service lanes. Construction activities related to internal roads, drains, and office and service buildings are nearing completion.

The Bepza Economic Zone – Mirsarai-Phase 1 (1st Revised) project was initiated in 2018 with an estimated cost of Tk1,302.91 crore and has achieved 75% completion as of now. The project's deadline is set for December 2024, and it envisions creating a smart and green economic zone.

Engineer Mohammad Anamul Haque, the project director, expressed confidence in meeting the project's timeline, stating, "We receive daily visits from delegates representing various countries who are interested in choosing industrial plots. We are encouraging our investors to begin construction and prepare for production. We expect that the project work will be completed on time."

Currently, Bepza oversees eight operational export processing zones (EPZ) — Chattogram EPZ, Dhaka EPZ, Mongla EPZ, Ishwardi EPZ, Cumilla EPZ, Uttara EPZ, Karnaphuli EPZ, and Adamjee EPZ — across Bangladesh.

The development of the Bangabandhu Sheikh Mujib Shilpa Nagar, spanning 30,000 acres in Mirsarai and Sitakunda upazilas of Chattogram, and Shonagazi upazila of Feni, has seen the initiation of production by five industries, with another 15 industries currently under construction. This initiative promises significant economic growth and opportunities in the region.