Confidence Cement invests US$68m in new facility in Narsingdi

Confidence Cement PLC, a leading cement producer based in Bangladesh, is investing BDT8.15bn (US$68.2m) to construct a new production facility on 10 acres of land in Narsingdi. This expansion comes amid a slowdown in construction across Bangladesh following political changes, yet the company is positioning itself to meet future demand in Dhaka and surrounding regions.

The new unit, Confidence Cement Dhaka Ltd, will have a daily production capacity of 6000tpd and is expected to create around 1000 jobs upon its completion in early 2025. Despite the current economic uncertainty, the cement producer aims to enhance its market presence, with construction 80 per cent complete. The project is being financed through a blend of company equity and loans, with Prime Bank PLC leading the financing effort and raising BDT5.58bn through a syndicated credit facility. Energy-efficient equipment from German manufacturer Loesche will be installed, ensuring the plant operates at optimal efficiency while addressing the higher transportation costs currently affecting its operations in Dhaka.

This new facility will help Confidence Cement better serve the capital, where much of the nation's construction demand is concentrated.