Friday, 04 Nov 2011
Bangladesh steel product makers Wednesday said that one day's production loss now comes to BDT 600 million because of staggered gas supply at the country's prime rod manufacturing hub in Chittagong.
They said steel makers in Sitakunda and Baizid belts, nearly 250 kilometres away from Dhaka and just 15 kilometres from Chittagong Port manufacture around 10,000 tonnes a day.
The gas distribution entity Karnaphuli Gas Distribution Company began gas staggering three days a week for the industrial belt on October 26. The manufacturers supply nearly cent per cent of quality mild steel rod to meet the country's requirements. Besides, on an average they supply 70% of total steel requirements of the country.
The major steel players in the belt are BSRM, AKS, RSRM, KSRM, SARM, GPH Ispat, Baizid Steel, Islam Steel which produce over 5000 tonnes of steel products a day. The other re-rolling mills numbering 40 plus produce nearly another 5000 tonnes, industry people said.
Mr Alihussain Akberali chairman and managing director of the country's largest steel maker BSRM Group said that "We estimate that production losses have reached BDT 600 million a day as all major players produce nearly 10,000 tonnes of steel products a day.”
Mr Alihussain Akberali hinted that the gas staggering would create shortage of MS products during its peak time leading to rise in the prices of key construction materials.
He said those who earlier converted their plants into furnace oil system, but kept it on hold, would raise their production cost. He added that "I think an additional BDT 1700 per tonne would be required if any rod manufacturer engages in production through furnace oil.”
Many millers said they would be forced to declare lay-off if the gas staggering continues for a few more days.
Head of Marketing and Production Development of the BSRM Group of Companies Mr Firoze has said they have two major re rolling plants in Chittagong in the Fouzderhat and Nasirabad industrial areas and production at both the units has reduced by 45% due to gas staggering. He said that "This will result in the hike of prices of rod, angle, channel and other steel products and the capital city will be most affected as flyovers and other major infrastructures in Dhaka are using 100% steel products made by the major steel plants of Chittagong.”
(Sourced from FE)
Bangladesh steel product makers Wednesday said that one day's production loss now comes to BDT 600 million because of staggered gas supply at the country's prime rod manufacturing hub in Chittagong.
They said steel makers in Sitakunda and Baizid belts, nearly 250 kilometres away from Dhaka and just 15 kilometres from Chittagong Port manufacture around 10,000 tonnes a day.
The gas distribution entity Karnaphuli Gas Distribution Company began gas staggering three days a week for the industrial belt on October 26. The manufacturers supply nearly cent per cent of quality mild steel rod to meet the country's requirements. Besides, on an average they supply 70% of total steel requirements of the country.
The major steel players in the belt are BSRM, AKS, RSRM, KSRM, SARM, GPH Ispat, Baizid Steel, Islam Steel which produce over 5000 tonnes of steel products a day. The other re-rolling mills numbering 40 plus produce nearly another 5000 tonnes, industry people said.
Mr Alihussain Akberali chairman and managing director of the country's largest steel maker BSRM Group said that "We estimate that production losses have reached BDT 600 million a day as all major players produce nearly 10,000 tonnes of steel products a day.”
Mr Alihussain Akberali hinted that the gas staggering would create shortage of MS products during its peak time leading to rise in the prices of key construction materials.
He said those who earlier converted their plants into furnace oil system, but kept it on hold, would raise their production cost. He added that "I think an additional BDT 1700 per tonne would be required if any rod manufacturer engages in production through furnace oil.”
Many millers said they would be forced to declare lay-off if the gas staggering continues for a few more days.
Head of Marketing and Production Development of the BSRM Group of Companies Mr Firoze has said they have two major re rolling plants in Chittagong in the Fouzderhat and Nasirabad industrial areas and production at both the units has reduced by 45% due to gas staggering. He said that "This will result in the hike of prices of rod, angle, channel and other steel products and the capital city will be most affected as flyovers and other major infrastructures in Dhaka are using 100% steel products made by the major steel plants of Chittagong.”
(Sourced from FE)
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