South Korean Kido to invest $36.2m in Adamjee EPZ

Kido Industrial Company, a renowned apparel manufacturer based in South Korea, will invest $36.17 million in the Adamjee export processing zone (EPZ) to establish a new company and renovate an existing firm that it recently acquired.

Of the amount, the company will make a fresh investment of $31.17 million for establishing a new company, named Kido Dhaka Company limited.

Also, the company plans to initially spend $5 million in the renovation of the factory of French Fashion Knitting and plans on taking it up to $14 million in stages.

The Bangladesh Export Processing Zones Authority (Bepza) signed an agreement with the investor company Kido in this regard at the capital's Bepza complex on Monday.

Major General Abul Kalam Mohammad Ziaur Rahman, who on Monday took charge as Executive Chairman of Bepza, his predecessor Major General Md Nazrul Islam and Joseph Ahn, Director of Kido Dhaka Co Ltd, were present atthe agreement signing ceremony.

The new agreement in the last investment deal was inked during Nazrul Islam's tenure as Bepza's executive chairman.

Kido, which has over four decades of experience in the manufacturing industry, is expected to create an estimated 16,000 employment opportunities. The company will annually produce around 2 million pieces of cloth jackets, motorcycle safety jackets, leather jackets, fiber jackets, work jacket, sports jackets, baby warmers, soft shells, sweatshirts, vest, work-wear, coveralls, hospital gowns, protective clothes, PPE, pants, trousers, shirts, polo shirts, T-shirts, swim shots, short pants and school dresses.

Currently, as many as 71 South Korean companies are operating in the eight EPZs under Bepza, the highest number of investors from a foreign country after Bangladeshi owned companies.

In the Adamzee EPZ companies from 14 countries, including the USA, Japan, the UK, South Korea, China, Taiwan, Germany, Spain and India, are operational.

Kido has investments in Vietnam, Myanmar and Indonesia. The annual turnover of the company is around $300 million, according to the company.

Speaking to The Business Standard, after inking the investment deal, Joseph Ahn said, "Produced goods in the Bangladesh plant will be exported to the markets of Europe, America, Japan and Korea."

He said that the low labour cost has attracted the company into making the investment decision regarding Bangladesh.

"Besides the low labour cost, Bangladesh has a massive workforce," he said.

"We get facilities in Vietnam, Myanmar and Indonesia similar to what Bepza is offering, but the labour cost is low compared to Vietnam and Indonesia," he further explained.

Other than setting up a new company, Kido has taken over the foreign-based French Fashion Knitting Pvt Ltd, which used to produce garments accessories in the EPZ facility.

On Kido's acquisition of the company Joseph Ahn said, "We will rearrange the building infrastructure with a focus on safety."

Kido will set up a jacket manufacturing factory in the French Fashion facility, he said, adding that it will initially create employment opportunities for 2,000-3,000 individuals, which will eventually go up to 10,000.

Other factories, which will be set up for Kido Dhaka Co Ltd, are expected to open up job opportunities for another 6040 individuals.

Outgoing Bepza Executive Chairman Major General Md Nazrul Islam told The Business Standard, "Fresh investments like these indicate that Bangladesh is now offering an ideal climate for investments."

He also said that Bepza is dedicated to safeguarding both the interests of investors and welfare of workers.

The factories, operational at the Adamzee EPZ, produce garments, garments accessories, textiles, sweaters, fabrics, socks, OPC drums and seat trim covers, among other items.

So far, $613.19 million has been invested in the EPZ. At present, 50 industrial units are operating and the establishment of 14 more industrial units is currently underway.

The Adamjee EPZ, which was established in 2006, exported goods worth $704.86 million in the last fiscal. The total volume of goods exported from this EPZ is worth $6.14 billion.

About Kido Industrial Company: 

Kido, with over 40 years of experience in the manufacturing industry, started its journey in the technical motorcycle outerwear industry. Later, it developed its expertise in manufacturing waterproof garments and expanded its business globally.

In 1991 it established a plant, Kido Jaya, in Indonesia. A second plant, Kido Mulia, in the same country was established in 2019. In 2004 the company set up Kido Hanoi in Vietnam, and in 2012 a second plant, Kido VNH, was set up in the country. In 2018 it invested in Myanmar through establishing Kido Yangon, according to the company website.