New industries in spate in Khulna 

Though one after another, state-run mills and factories have been closing in Khulna due to continuous losses, more than 100 new mills and factories of different products have been established in the region through private initiatives over the last four years.

More than Tk13,227 crore has been invested in these mills and factories, which have generated employment for 21,549 people during the period.

According to the Bangladesh Investment Development Authority (Bida), 114 small, medium and big mills and factories had been set up in 10 districts of Khulna division in the period from July 2016 to October 2020.

The districts are: Khulna, Bagerhat, Satkhira, Jashore, Jhenaidah, Magura, Norail, Kushtia, Chuadanga, and Meherpur. 

Pranab Kumar Roy, director of Bida, said, "The entrepreneurs are becoming interested in setting up new mills and factories due to people's demand. Political stability, security, demand for products, a communication system, and economic development are also the reasons behind the new investment in Khulna. The standard of living in the region has also been upgraded as new employment opportunities have been generated here."

Among the 10 districts, Khulna, Jashore and Kushtia are in a leading position in setting up new mills and factories, he said. 

"In our division, vegetable processing for export and garments accessories industries are developing, which is very promising for the development of the country," he added.

The newly built mills and factories produce: jute and textiles, LP gas, frozen fish, food and allied products, cattle, poultry and fish feed, light engineering, pharmaceuticals, fertiliser, printing and packaging, wood and particle board, dairy products, and plastic products.

Aside from auto rice mills, fish hatcheries, poultry hatcheries, and power plants, it has: the chemical industry, cold storage, automatic brick fields, the construction industry, and the leather and tannery industry.

Of those, the biggest 10 factories are: A Rahman Jute Mill in Jashore's Noapara industrial area, Alpha Accessories Limited in Noapara of Bagerhat's Fakirhat upazila, Begum Auto-rice Mill Unit 2 in Khulna city, Dubai Bangla LP Gas in Mongla, H and S Cookware in Kushtia, Jaman Jute Mill Corporation in Bagerhat, plus Joitun Auto-rice and Dal (lentil) Mill, XR Flaxo Pack Limited, Pragati Fish Limited, and Rupsha Meat and Organic Fertiliser Industries Limited in Khulna district.    

Motiur Rahman Ramjan, assistant managing director of M Owaji Jute Mill, said the mill was established in 2014, with an investment of Tk70 crore. The mill has been profitable since the beginning, he said. The jute sacks and yarn of the mill are exported to India and China. 

Now 480 employees work at the mill. Around Tk40 lakh is spent per month as the operational cost, including the salaries of the staff. 

Ramjan claimed that even during the novel coronavirus crisis, they paid their employees' salaries regularly. 

Sheikh Golam Kibria, coordinator of Green Board and Fiber Mill Limited in Bagerhat, said the factory was still in a trial phase. Full production has been delayed due to the Covid-19 pandemic, he said. 

However, he hopes that the mill will be profitable. 

Kamruzzaman, one of the key partners of Jaman Jute Mill in Digholia of Khulna, said the mill was set up in 2017. Most of the jute yarns of the mill are exported to India and some are to Dubai.  

Around 350 people work in the factory.

"Currently, the mill is not profitable due to a financial crisis. We are struggling hard to run the factory due to the lack of a bank loan. Bank loans in easy installments and incentives from the government are required to sustain an industrial organisation," said Kamruzzaman.  

Sheikh Ashrafuzzaman, secretary general of Greater Khulna Development Movement Coordination Committee, said, "Though new mills and factories have been built in Khulna by private initiatives, the state-run ones are shutting down one after another, incurring losses continuously."

He blamed the lack of the government's proper planning, the bloated administration and irregularities, plus mismanagement and corruption of the authorities concerned for the situation.   

On 25 June, the government declared the closure of 25 state-run jute mills across the country. Of those, nine are in Khulna. The closure of the nine mills has left 8,100 permanent workers of the factories unemployed. 

Later, the assurance of reopening the mills under public-private partnership was given. 

However, no decision about reopening the mills has been taken as yet, according to the Bangladesh Jute Mills Corporation.