RFL to build Tk200cr factory to expand global footprint

Summary:

• PRAN-RFL invests Tk200 crore in export-oriented plastic factory in Gazipur
• Agreement signed with China's Haitian Group for machinery installation
• Factory aims for Tk450 crore annual exports and 2,500 new jobs
• Key markets include India, US, Canada, Germany, Australia, and UAE
• American company placed a $6 million order for plastic products

PRAN-RFL Group has taken an initiative to build a 100% export-oriented plastic factory in Kaliganj Industrial Park of Gazipur, with an investment of over Tk200 crore to expand its footprint in the global market.  

The business conglomerate will sign an agreement with China's Haitian Group today on the installation of factory equipment, said Kamruzzaman Kamal, director at Pran-RFL Group.  

He said a major agreement with Haitian will facilitate the import of machinery from China for producing export-oriented household plastic products. Under the deal, machinery and infrastructure installation will be completed within three months.  

"We already have export orders, so we aim to start production quickly. We expect to begin operations by June after completing the installation," added Kamruzzaman Kamal.  

Officials at the PRAN-RFL Group said the new factory will enable annual exports worth Tk450 crore, create 2,500 jobs, and boost the company's export growth by over 30%.  

Salah Uddin Shikder, assistant general manager (AGM) of RFL Durable Plastic, said Bangladesh's RFL products are exported primarily to India, followed by Germany, the US, Canada, Australia, Korea, Spain, the United Kingdom, and the United Arab Emirates (UAE).  

"There is high demand in these countries for our household plastics, bicycles, melamine, home construction materials, polybags, hangers, non-leather footwear and plastic furniture," he added.  

"Our new target markets are Europe, the US and North America, where there is demand for containers, toys, tableware and kitchenware of various designs," said Salah Uddin Shikder. "An American company has already placed a $6 million order, and we are in talks with several others."  

He said per capita plastic consumption in the US is 150 kg, with China currently dominating the market. "However, the US-China trade war has created an opportunity for us, particularly in exporting disposable and PET products," said Shikder.  

RFL began exporting household plastic products to India in 2007 and now exports 500 products across 30 categories to 80 countries. The company earned around $100 million in revenue during the fiscal 2023-24.  

"Foreign buyers have high demands, including safety and labour compliance, which increases production costs. To support this, the government offers incentives to 100% export-oriented factories," Kamruzzaman Kamal explained.   

"Our new factory is designed for this purpose, and none of its products will be sold in the local market."  

He mentioned that RFL products are currently available in supermarkets such as Walmart in the US, Dollarama and Loblaws in Canada, Carrefour in France, Lidl in Germany, Target in Australia, Loksi in Korea and Woolworths and Argos in the UK. 

Due to high demand, these buyers are establishing separate units, he added.