Bangladesh’s BSRM to set up a Steel Plant in Kneya

Bangladesh’s one of the largest re-rollers BSRM (Bangladesh Steel Re-rolling Mills Ltd) is set to open a steel mill in Kneya with a total investment of Shilling 6.5 billion (USD 65 million), Shilling is used as a currency in four East African countries Kenya, Tanzania, Uganda, and Somalia.

The plant is likely to produce 400 tonnes of steel per day and is likely to be known as BMS Steel Limited. The investment is backed by a consortium of Kenyan, Mauritian, and UAE investors, the names of which have not been disclosed yet.

The company has informed that the board of directors has decided to make equity investment of USD 4.67 million (representing 18%) in BMS Steel Limited, said the Dhaka Stock Exchange-listed steel firm in a local regulatory notice.

The new entrant which will be producing 0.40 MnT bars and sections per year is likely to give competition to the local players in Kenya. Local steel manufacturers in Kenya include family-owned construction materials manufacturer Devki Group, Kilifi-based Jumbo Steel Mills, Nairobi based Tononoka Steel, Apex Steel Mill Corporation, Steel Makers Ltd and Prime Steel Ltd.

The infrastructure projects such as the multi-billion Standard Gauge Railway (SGR) have driven up demand for steel products in the country. In August this year, Jumbo Steel Mills completed construction of a Sh1 billion factory that was expected to produce 150 MT of steel per day and create more than 500 direct jobs for locals of Kilifi’s Rabai sub-county.

Kenyan steel factories rely on industrial steel imports as well as scrap metal to manufacture TMT bars, steel tubes, angles bars and barbed wire nails among others. In July this year, Devki Group had announced it plans to inject Sh45.5 billion in the region’s first raw steel production plant, seeking to exploit locally sourced iron ore.