Abul Khair Steel expands with focus on eco-friendliness
During a recent visit to the factory, it was observed that despite the large-scale operations, the workforce is minimal
The process begins with 100 tonnes of scrap iron melted in a specialised furnace at a scorching 1,600 degrees Celsius. Chemicals, including oxygen and carbon, extract impurities, which rise to the surface and are removed, leaving behind pure molten iron.
This highly efficient process takes just 48 minutes, highlighting the advanced technology used at Abul Khair Steel Melting Ltd's factory in Sitakunda, Chattogram.
The molten iron is then cast into billets using precise molds, which are further processed into rods of various sizes within minutes.
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During a recent visit to the factory, it was observed that despite the large-scale operations, the workforce is minimal. The fully automated production process is monitored and controlled by just a handful of engineers in the melting section's control room.
The factory, located half a kilometre off the Dhaka-Chattogram Highway in Sitakunda's Shitalpur area, spans 750 acres, making it the largest steel plant in the country.
According to factory officials, it uses electric arc furnace (EAF) technology – one of the most advanced methods globally – for producing pure iron from scrap. It was also the first in Bangladesh to introduce this technology in 2015. The company currently operates two EAF units with a combined annual capacity of 20 lakh tonnes.
Recently, the company launched a state-of-the-art re-rolling unit, which is set to begin commercial production soon. Once fully operational, it will give the company the highest rod production capacity in the country.
Abul Khair Steel Melting Ltd CEO Imran Momin said, "Our steel has been used in almost all major megaprojects, including the Padma Bridge, Metro Rail, Rooppur Power Plant and Elevated Expressways. To support future construction projects, we have expanded our production capacity while prioritising environmental sustainability."
Environmentally friendly rod production
Officials say the factory produces rods through using an environmentally friendly process. Although rod production requires a significant amount of water, it does not rely on groundwater. Instead, it utilises rainwater harvesting and water stored in a dam built on a nearby hill. Water from the reservoir is transported to the factory through large pipes and is also used by the local community.
To control air pollution, the facility is equipped with a fume treatment plant. Additionally, work is underway to install a 12-megawatt solar power plant on the factory's expansive rooftop. Besides, at the factory's electric arc furnace iron is melted and purified by using electric heat, eliminating the need for gas.
Imran Momin said the firm has taken measures to minimise environmental impact. "To reduce emissions, we have implemented a fume treatment system, ensuring that no harmful smoke is released. Additionally, by using 100% rainwater, we prevent excessive pressure on groundwater levels."
He further explains, "The electric arc furnace allows us to refine scrap into nearly 100% pure billets, enabling us to produce earthquake-resistant rods. This technology is also energy-efficient, making it a sustainable choice."
Largest rod production factory
Rod production at the factory began in 2009. Until recently, its annual production capacity was 12 lakh tonnes. However, the new re-rolling unit is set to have an individual capacity of 18 lakh tonnes, increasing their total annual rod production capacity to 30 lakh tonnes – more than any other company in the country, officials say.
According to the Bangladesh Steel Manufacturers Association (BSMA), there are around 40 automated steel factories in the country, with 4-5 major players. These companies have a combined capacity of over one crore tonnes of rod production annually. The annual domestic consumption of rods is 65 to 70 lakh tonnes, meaning a portion of the factories' capacity is still unused.
Plans for investment in corrugated sheets
In the Madambibirhat area of Sitakunda, Abul Khair Steel Products manufactures corrugated sheets. Set up in 1993 on 300 acres of land, the factory has a production capacity of 6.4 lakh tonnes. Its "cow brand" corrugated sheets have held the market leader position for over 20 years.
Abul Khair Steel Products Chief Operating Officer Ejaz Ahmed, said, "Currently, due to lower demand, the factory is operating at half its capacity. However, with the increasing use of coloured sheets in homes and industries, we are planning new investments to expand our production capacity."
From bidi factory to multiple industries
In 1946, a young Abul Khair, founder of Abul Khair Group, arrived in Chattogram from Noakhali with hopes of finding his fortune. In 1953, he established a bidi factory, marking the start of the Abul Khair Group.
Today, in addition to steel, the group operates 40 industrial establishments across various sectors, including cement, shipping, ceramics, powdered milk and tea. These factories employ 55,000 workers. Last year, the group's transactions totalled nearly Tk25,000 crore. The company is now making significant investments in the food products market as well.
