Long-term loan for expansion investments

At present, Bangladesh mainly manufactures clothing. That is why investments in other sectors are important to activate additional sources of local income, such as the as of yet hardly developed plastics industry. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, is providing a long-term loan totalling USD 15 million to Banga Building Materials Ltd. (BBML) for an expansion investment. The investment will serve to extend existing capacity and set up new production lines for fans and energy-saving LED lights.

New production lines for fans and LED lights

Currently, BBML generates most of its turnover by producing pipes, door panels and bathroom fittings. As part of the upcoming expansion, new business fields such as light bulbs and fans will be extended. The company is part of the PRAN-RFL Group, a conglomerate with 95,000 employees that consists of a food and a plastics division. BBML was founded in 2007 as one of the first companies in the plastics division, and now employs a staff of approx. 4,000. The planned expansion investment should lead to the creation of a further 1,500 jobs.

"We enjoy a good working relationship with Banga Building Materials Ltd., and are now supporting the company in expanding its capacity in existing fields of activity and tapping into new ones. In doing so, we are contributing to strengthening local industry in Bangladesh," said Jochen Steinbuch, Director of DEG's representative office in Bangkok, at the contract signing in Dhaka.

"We are delighted to have DEG as our partner and adviser offering us sufficient funds for the project at an affordable price which in return allows us to launch new products at an attractive price to the consumers," emphasised Mr. Ahsan Khan Chowdhury, CEO and Chairman of the PRAN RFL Group.

Assistance through Business Support Services

As part of its Business Support Services, DEG is also supporting BBML in implementing measures in the area of corporate governance and occupational health and safety.

Qualified work and income are important factors in helping people open up prospects for the future. DEG plays an important role here with its financings in developing and emerging-market countries. The companies co-financed by DEG employ a total of around 800,000 people.