The Japan International Cooperation Agency (JICA) has funded the new environmentally friendly steel plant of Bangladesh Steel Re-Rolling Mills (BSRM) Limited. The plant is located at Mirsharai, Chattogram, and it was inaugurated on February 1, 2025. The ceremony marked a significant milestone for JICA supporting Bangladesh’s private sector. The project, supported by a USD 50 million loan signed in October 2023, represents JICA’s eighth Private Sector Investment Finance (PSIF) transaction and its first corporate loan project in Bangladesh, according to press release.
The inauguration ceremony was attended by Adilur Rahman Khan, Advisor to the Ministry of Industries and Ministry of Housing and Public Works; H.E. Antonio Alessandro, Italian Ambassador to Bangladesh; Dr Shahadat Hossain, Mayor, Chattogram City Corporation; Alihussain Akberali, Chairman, Bangladesh Steel Re-Rolling Mills (BSRM) Limited; Ichiguchi Tomohide, Chief Representative, JICA Bangladesh Office, along with other esteemed guests.
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JICA recognizes that a strong domestic steel industry is crucial for infrastructure development and economic resilience. The new BSRM plant will add 500,000 metric tons per annum (MTPA) of rebars, 100,000 MTPA of wire rods, and expand billet production by 250,000 MTPA. By reducing dependence on imported steel, the facility will help stabilize the country’s trade balance while generating more than 500 new employment opportunities and supporting the development of local industries.
“This project exemplifies JICA’s dedication to partnering with leading companies like BSRM to drive industrial advancement in Bangladesh,” said Ichiguchi Tomohide, Chief Representative, JICA Bangladesh. “We hope that the inauguration of this new plant will serve as a symbolic milestone to develop Bangladesh’s industries further, attracting increased foreign investment to Bangladesh.”
Beyond financing, JICA prioritizes sustainable and responsible industrial growth. The BSRM plant incorporates cutting-edge environmental technologies, including an advanced Air Pollution Control (APC) system to ensure clean air emissions and a water treatment and recycling facility that achieves 100 percent process water reuse. Through the integration of rooftop solar power plants and energy-efficient production methods, the factory will mitigate climate change by reducing greenhouse gas (GHG) emissions by 10,000 tons (CO2 equivalent) per year. Additionally, the plant promotes a circular economy by repurposing slag from steel production for construction use. These initiatives contribute to Sustainable Development Goals (SDGs) 7 (Affordable and Clean Energy), 9 (Industry, Innovation, and Infrastructure), and 13 (Climate Action), reinforcing JICA’s commitment to environmental stewardship.
JICA remains committed to fostering a sustainable industrial ecosystem in Bangladesh. With the inauguration of this eco-friendly steel plant, JICA and BSRM set a benchmark for responsible industrial growth, ensuring that economic development aligns with environmental protection and social well-being.
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