PRAN-RFL, HAMKO groups to lease closed jute mills, invest Tk 10.5 billion

Two closed state-owned jute mills in Khulna and one in Sirajganj are set to be leased to PRAN-RFL and HAMKO groups. The two industrial groups will invest Tk 10.5 billion in the closed mills to produce ready-made garments, footwear, toys, furniture, diversified jute products and lithium batteries. The investment is expected to create employment for a total of 15,000 people.

Abdullah Battery Company (Private) Limited, a concern of HAMCO Group, will lease Platinum Jubilee Jute Mill in Khalishpur, Khulna, for 30 years. Meanwhile, PRAN-RFL Group will lease Star Jute Mills in Dighalia, Khulna, and National Jute Mills in Raipur, Sirajganj.

Confirming the matter, Bangladesh Jute Mills Corporation (BJMC) Chief Operating Officer (additional charge) Md Mamunur Rashid told Prothom Alo that three jute mills in Khulna and Dinajpur were being leased to PRAN-RFL and HAMKO groups. He said a formal agreement on the leases would be signed Tuesday in the presence of Prime Minister Tarique Rahman.

While private jute mills have become profitable, mills under the Bangladesh Jute Mills Corporation (BJMC) had been incurring losses year after year. Unable to bear the burden of these losses, the government closed 25 jute mills on 1 July 2020 after offering voluntary retirement, or a ‘golden handshake’, to 24,886 permanent workers. Of these, 22 were jute mills and three were non-jute factories.

After the mills were closed, the then government began the process of leasing them to the private sector. So far, BJMC has leased 14 jute mills to private-sector operators. Of these, nine have resumed production. BJMC officials said this has created employment for around 9,500 people.

One of the country’s largest industrial groups, PRAN-RFL Group, plans to invest around Tk 7.5 billion to produce various products after leasing Star Jute Mills in Khulna and National Jute Mills in Sirajganj. The two factories are expected to create employment for around 11,500 people.

PRAN-RFL Group is set to lease around 46 acres of the 56-acre Star Jute Mills site, which was established in 1956. The group will invest around Tk 2.5 billion there to produce high-value jute products, furniture, medium-density fibre (MDF) boards and various other products. This will create employment for 5,000 people. The industrial group plans to sell products worth Tk 5 billion annually from the factory.

PRAN-RFL Group is also set to lease around 38 acres of the 75-acre National Jute Mills in Sirajganj, established in 1960. It will invest around Tk 5 billion to set up factories producing ready-made garments, handicrafts, bags, footwear and toys, as well as facilities for raw materials, packaging and product storage. This will create employment for around 6,500 people. The factory is expected to have an annual turnover of around Tk 6 billion.

Asked about the plans, PRAN-RFL Group Director of Marketing Kamruzzaman Kamal told Prothom Alo, “Products will be manufactured at the two factories for both the domestic market and export. We will start production very soon.”

In response to another question, he said it usually takes three to five years to purchase land, develop it and build a factory. In contrast, having ready-to-use land allows production to begin quickly. This saves not only time but also a substantial amount of money.

Meanwhile, PRAN-RFL Group has also reopened the long-closed state-owned Rajshahi Textile Mill and Rajshahi Jute Mill under a public-private partnership (PPP). Around 3,500 people are currently employed at the two factories. This number is soon expected to increase even further.

HAMKO Group is set to lease around 50 acres of the approximately 56-acre site of Platinum Jubilee Jute Mills in Khulna, which was established in 1954. The group will invest Tk 3 billion to set up two factories there, creating employment for around 3,500 people.

According to HAMKO Group officials, the group will set up two factories at Platinum Jubilee Jute Mills. One will be a specialised jute mattress manufacturing plant. These mattresses will be exported to various countries.

HAMKO will set up the factory through a joint investment with a Chinese company. It will also establish a lithium-ion battery manufacturing plant, where batteries will be produced using battery cells imported from abroad.

HAMKO Group began its operations in 1986 with the establishment of Abdullah Battery Company. The group, a well-known name in the battery sector, later expanded its business into plastic household products and furniture, non-stick-coated aluminium and stainless-steel cookware, leather and sports footwear, tyres, and household electrical appliances.

Asked about the plans, HAMKO Group Company Secretary Rezaul Karim told Prothom Alo, “BJMC has assured us that it will hand over the closed jute mill within three months. We will then begin work on setting up the factories. We expect to be able to start operations at both factories within a year.”