Appollo Ispat Complex Ltd a subsidiary of Appollo Group plans to produce colour coated corrugated iron (CI) sheet soon.
The company is now producing Rani branded CI sheet and galvanised sheet, and marketing nationally and internationally. Around 120,000 metric tonnes of CI sheet is being produced per year, making up 20% of the total market share.
“Though the market size is small, demand for coloured CI sheet is increasing,” said Abdur Rahman, deputy managing director of the company.
Appreciated for its durability, enticing looks and corrosion resistance, these colour coated sheets are more flexible and thus offers an elegant and eye-catching look to the whole setup, he said.
Thailand, Myanmar and African countries are the main international market for the locally produced CI sheet. “But exports depend on demand and pricing,” said Rahman. At present, the country has a capacity to produce 1m tonnes of CI sheet.
To produce lead and acid-free CI sheet by June next year, the company is now working to set up an environment-friendly German technology non-oxidising furnace (NOF).
“Once completed, the finished CI sheet will be shinier and more durable, and the cost of production will reduce by 25% or Tk2,000 per tonne,” said Rahman. Production capacity will also increase to 120 tonnes of CI sheet per line, up from 70-80 tonnes in the existing two lines, he said.
The new technology will be established to the backyard of the factory, which is now under construction in 17-acre factory area at Shimrail in Narayanganj.
The raw materials HR coil from Japan and Zinc from South Korea are imported to produce CR coil, the essential element for CI sheet.
The NOF project will cost Tk950m, of which Tk600m will be provided from a part of initial public offering, and sponsor shareholders will contribute to the remaining amount.
Appollo Ispat has recently got approval from the Bangladesh Securities and Exchange Commission to raise Tk2.2bn by issuing 100m ordinary shares of Tk10 each, in addition to Tk12 as premium per share.
“Of the raised fund from the market, around Tk1.53bn will be spent on loan repayment, Tk600m for the NOF project and the rest to bear the IPO expenses,” said company’s deputy managing director.
