PRAN-RFL Group secures 30-year lease for 2 state-owned jute mills
The group plans Tk750 crore investment to revive the closed facilities and create around 11,500 direct jobs.
Highlights:
- Group plans Tk750 crore investment across facilities
- Projects expected to create 11,500 direct jobs
- Mills will manufacture diverse industrial products
PRAN-RFL Group has secured a 30-year lease for two jute mills under the Bangladesh Jute Mills Corporation (BJMC), according to a press release issued by the industrial conglomerate.
The leased mills are Star Jute Mills Ltd in Chandanimahal of Dighalia upazila in Khulna and Jatiya Jute Mills Ltd in Raipur of Sirajganj.
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Under the lease agreements, PRAN-RFL will operate 45.99 acres at Star Jute Mills and 37.97 acres at Jatiya Jute Mills.
PRAN-RFL plans to invest around Tk500 crore at Jatiya Jute Mills to manufacture knitwear, woven garments, denim products, jackets, handicrafts, bags, footwear and toys, according to the press release.
The facility will also include a washing plant and modern storage facilities for raw materials, packaging materials and finished products.
The project is expected to create around 6,500 direct jobs and generate annual turnover of Tk600 crore, the group said.
At Star Jute Mills, PRAN-RFL plans to invest around Tk250 crore to establish a modern, environment-friendly industrial facility.
The plant will manufacture value-added jute products, furniture, medium-density fibre (MDF) boards and other products. It will also have modern storage facilities for raw materials, packaging materials and finished goods.
The project is expected to create around 5,000 direct jobs and generate annual turnover of Tk500 crore, according to the company.
PRAN-RFL said its objective is to transform the long-closed jute mills into modern, production-oriented industrial facilities, while accelerating industrialisation, creating employment and contributing to economic growth.
The group said rising production costs, supply-chain restructuring and growing demand among international buyers for alternative production destinations are creating opportunities for Bangladesh to expand exports beyond the garment sector.
It identified footwear, bags, tents, umbrellas, toys, bicycles, light engineering and household goods as sectors with significant domestic demand and export potential.
PRAN-RFL said it plans to restart the closed state-owned industrial facilities by utilising existing infrastructure and commencing production as quickly as possible.
Products manufactured at the two facilities will target both domestic and international markets, strengthening Bangladesh's export capacity, the group said.
The investments are also expected to create thousands of direct and indirect jobs, strengthen local supply chains, increase industrial production, generate foreign exchange and improve skilled manpower and industrial infrastructure, contributing to regional economic growth.
