Bangladesh: BCIC plans new Chhatak mill as cement demand rises

Bangladesh Chemical Industries Corp (BCIC), a unit of Bangladesh Ministry of Industries, is implementing a new cement mill project as the company converts its wet-process line at Chhatak Cement Company Ltd (CCCL) to dry-process. The project is estimated to take three years to complete through international tender.

The factory is located in the district of Sunamgonj in northeastern Bangladesh and uses imported limestone from Megalaya, India. The plant currently has clinker and cement capacities of 1500tpd and 500tpd, respectively.

Meanwhile, according to a leading research house, the rising demand of construction and resurgent real estate has helped the Bangladeshi cement sector flourish. Domestic demand growth has accelerated from five to eight per cent over the last 3-4 years, boosted by industrial and construction sectors.

In the run-up to 2020, demand is forecast to grow by more than 20 per cent as the government is undertaking a large number of mega projects in addition to the country's rapid industrialisation and turnaround of the domestic real estate sector, it is estimated.

Furthermore, Bangladesh’s cement companies export to seven states in eastern India. In the last four years, they have exported between 0.8-1Mta of cement. 

The cement price has also kept pace, with products of multinational brands such as Holcim, Lafarge and HeidelbergCement selling at BDT470 (US$5.99)-BDT480/bag, up on the BDT350 price three years ago.