The CHT Group, a German chemical company, has invested $8 million in a new venture at the Meghna Industrial Economic Zone in Sonargaon, Narayanganj. The venture will produce auxiliary chemicals used in the dyeing, washing, and printing of textiles and garments.
According to company officials, the CHT Group also has plans to invest in a second phase of the venture to gain a larger share of the chemical market in Bangladesh.
Bangladesh currently imports textile and garment chemicals worth approximately $2 billion annually.
At present, the CHT Group has a business worth $140 million in Bangladesh through its only distributor RH Corporation.
Officials from the CHT Group and RH Corporation made this disclosure on Tuesday during the inauguration ceremony of the new chemical plant. The Industries Minister Nurul Majid Mahmud Humayun was present as the chief guest of the event.
Prodip Kumar Dhar, general manager of CHT Bangladesh Pvt Ltd, told The Business Standard, “We have plans to gradually increase the investment to capture the maximum market share and this new unit will help to meet a certain portion of the current demand.”
CHT Bangladesh is planning to establish a green factory powered by solar energy and equipped with Effluent Treatment Plants (ETP) and Zero Liquid Discharge (ZLD) systems, he added.
Rajibul Huq, managing director of RH Corporation, said, “CHT Group is the only multinational auxiliary chemicals supplier in Bangladesh for textile and garments industries, which covers a full range of chemicals.”
The company’s annual turnover in the Bangladesh market is currently around $140 million, and the new plant will be able to provide about one-third of the items currently imported from Germany, Turkey, China, and other countries, according to the official.
Rajibul Huq Chowdhury stated that the new plant will not only help the company increase its market share in the $2 billion chemical market but also reduce the prices of chemicals.
He added that their clients include major garment exporters such as DBL Group, Ha Meem Group, and Palmal Group, who conduct compliant business.
The managing director of RH Corporation stated that there are currently 20-25 local companies of varying sizes producing chemicals for the textile and garment industries.
He also mentioned that multinational companies are now investing in Bangladesh’s chemicals industry due to the country’s growing position as a hub for textile and garment production.
Local production of these chemicals will reduce import lead time, and factories will be able to obtain them on short notice, said Md Shakhawat Hossain, CEO of Eco Threads & Yarns, an endeavour of DBL Group.
Dr Frank Naumann, CEO of the CHT Group, said during the inaugural event of the chemical plant, said this year marks the 70th anniversary of the company and the opening of the CHT-group factory in Bangladesh is a milestone in this regard.
Industries Minister Nurul Majid Mahmud Humayun said that the Meghna Industrial Economic Zone has been successful in attracting domestic and foreign investment.
He also stated that the investment environment and skilled workforce in Bangladesh will attract other foreign companies, similar to CHT Group, to invest in the country.
Tanjima Mostafa, director of Meghna Group of Industries, said that the economic zone has already hosted 11 foreign and 10 local companies.
