Abul Khair Steel: Sustainable, environment-friendly production with world-class technology
As AKS produces 100% refined steel, it plays a vital role in building sustainable infrastructure
Highlights
- AKS uses eco-friendly Electric Arc Furnace technology for steel production
- Plant sources renewable energy, rainwater harvesting, and zero-waste systems
- Produces Bangladesh's first approved 700-grade rods for mega projects
- Advanced units ensure pollution-free, energy-efficient, high-speed steel manufacturing
- Green initiatives align with UN Sustainable Development Goals, reducing emissions
- International financiers recognize AKS's sustainable, world-class production practices
Abul Khair Steel (AKS), the largest steel producer in Bangladesh, manufactures fully refined steel using world-class Electric Arc Furnace (EAF) technology. This advanced European technology is eco-friendly, energy-efficient, and gradually reducing dependence on fossil fuels.
As AKS produces 100% refined steel, it plays a vital role in building sustainable infrastructure. From bridges and buildings to roads and industrial establishments, AKS steel not only ensures safety but also contributes to a stronger and more sustainable Bangladesh.
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The plant requires 180–200 megawatts of electricity per hour. To reduce reliance on the national grid, AKS is working to source 50 MW from renewable energy (solar panels).
Beyond solar power, AKS is implementing multiple initiatives for sustainable and green industry. These include rainwater harvesting for steel production, water treatment plants to achieve zero wastage, modern technology to reduce air pollution, maximising use of daylight instead of electric lighting, and advanced processes to reduce emissions. Using such state-of-the-art technologies, AKS produces high-strength rods while maintaining uncompromised product quality.
Sustainable and green industry
In 2015, AKS introduced the world's most advanced Electric Arc Furnace technology in Bangladesh. Italian company Danieli supplied the melting unit to produce billets by melting scrap and using required chemicals.
The unit includes a Fume Treatment Plant (FTP) and a Water Treatment Plant (WTP). The system is designed so that if either plant is shut down, the entire production halts; ensuring pollution-free operations. AKS also has an Air Separation Plant with a daily capacity of 260 tonnes to produce oxygen, nitrogen, and other elements.
The rolling unit, installed by German company SMS, produces rods at a record speed of 52.5 metres per second – the fastest in the world. Faster production also means lower carbon emissions.
Badol Hossain, Deputy General Manager (Mechanical) of Abul Khair Steel Melting Ltd, told The Business Standard: "The FTP and WTP are built-in and closed-loop systems. If one stops, production automatically halts. Each furnace has a dedicated FTP, which removes harmful substances from flue gases and releases purified air. The WTP purifies 750 cubic metres of water per hour."
A recent visit by The Business Standard to the Shitalpur plant revealed four reservoirs built in the hills to store rainwater, along with rainwater harvesting from rooftops. Since 2009–10, the factory has been operating entirely without groundwater, relying fully on stored rainwater.
To save electricity, the plant uses clear sheets and glass skylights on the roof, reducing the need for electric lighting during the day. The melting process produces slag, a by-product similar to soil. With the support of Buet researchers, AKS is now using slag to manufacture construction materials, particularly as a stone substitute for new roads.
Abu Raihan, Senior Manager (Quality Assurance Department), said: "We have developed a sustainable production system in an environmentally friendly way. Our lab is the only industry-level advanced quality lab in Bangladesh. With modern technology, we can produce pure rods while lowering carbon emissions."
Country's first 700-grade rod producer
Until recently, only 500-grade rods were approved for use in Bangladesh. They were used in Padma Bridge, Metro Rail, Dhaka Elevated Expressway, and the third terminal of Hazrat Shahjalal International Airport.
This year, Abul Khair Steel became the first in the country to receive approval to produce 700-grade rods, suitable for mega and large infrastructure projects. Currently, AKS manufactures rods in 420, 500, 600, and 700 grades in eight sizes.
Md Rezwanul Alam, FCA, General Manager (Accounts), said: "In March, we received approval to market the country's first 700-grade rods. We have a production capacity of up to 2,50,000 tonnes of rods per month."
Starting with corrugated sheets in 1993, AKS quickly became a market leader with its iconic Goru Marka brand. In 2009, it began producing rods. The annual capacity of its melting unit is about 20 lakh tonnes, while the two rolling mills have a combined capacity of 30 lakh tonnes.
Imran Momin, CEO of Abul Khair Steel, said: "We are committed to producing world-class quality steel products while ensuring low carbon emissions. For this, we use eco-friendly, modern, world-class technology, which reduces dependence on fossil fuels.
"Our long-term vision is to adopt the most advanced technologies to produce safer, more environment-friendly steel that helps conserve biodiversity. At the same time, we are reducing import dependency and saving foreign currency, making a significant contribution to the national economy."
Sheikh Shabab Ahmed, Head of Group Corporate Affairs and Legal, Abul Khair Group, said: "Our eco-friendly initiatives strongly contribute to achieving the UN Sustainable Development Goals (SDGs). Our green approach not only reduces industrial carbon emissions but also promotes clean energy, environmental protection, and biodiversity conservation, thus helping Bangladesh achieve the SDGs.
"Specifically, AKS activities directly or indirectly impact at least 13 SDGs, including SDG-6 (Clean Water and Sanitation), SDG-7 (Affordable and Clean Energy), SDG-9 (Industry, Innovation and Infrastructure), and SDG-11 (Sustainable Cities and Communities). Our commitment to sustainable construction will help build a safer and better Bangladesh for future generations."
International recognition
Because of its sustainable and eco-friendly production processes, Abul Khair Steel has earned the trust of globally renowned financial institutions and development partners. As a result, leading international organisations have financed and partnered with AKS projects. The organisations include GIEK – Norway's export credit agency; Standard Chartered Bank (SCB); HSBC; and Islamic Corporation for the Development of the Private Sector (ICD), Saudi Arabia – a private sector arm of the Islamic Development Bank (IsDB) Group.
Such global financing is recognition of AKS's green initiatives, eco-friendly technology, and steadfast commitment to sustainable production practices of international standards.
