ChemChina unit to build tyre plant for Bangladesh’s Jamuna Group

Under its ‘Belt and Road Initiative’ the government of China aims to redirect overproduction within certain key industries to other countries, particularly those in Eurasia, and one project being set up in response to this strategy is about to begin in South Asia. The Jamuna Group, a Bangladesh-based private enterprise active in a number of sectors, is establishing a tyre factory within the country with technical assistance from companies belonging to state-owned chemical firm China National Chemical Corporation (ChemChina).

ChemChina affiliate enterprise the Beijing Research & Design Institute of Rubber Industry (BRDIRI) is responsible for carrying out construction work; the factory is expected to enter production in May 2018 and will have a designed annual production capacity of 350,000 all steel heavy truck radials, 500,000 semi-steel passenger radials, 400,000 cross-ply tyres and 750,000 sets of inner tubes and rim bands.

Tofail Ahmed, Bangladeshi Minister of Commerce, and Li Guangjun, Economic and Commercial Counselor at China’s Embassy to Bangladesh, were present at a press conference on 26 March at which details of the new plant were announced. ChemChina reports that both men expressed their respective governments’ support for the project.

Jamuna Group general manager Shamim Islam announced the start of construction work, stating that it represents “a very important milestone and also a very important investment for Jamuna Group to diversify its industrial structure and layout.”

On behalf of ChemChina, Chen Hong, general manager of China Haohua Chemical Corporation (ChemChina Academy of Sciences), also warmly congratulated the start of the project. “In response to the Belt and Road Initiative proposed by the Chinese government, ChemChina has actively participated in domestic construction, in particular chemical projects in Bangladesh. The cooperation between BRDIRI and the Jamuna Group in building the tyre factory carries very important strategic significance.” Chen promised his support to BRDIRI in implementing the project and expressed hope that that both ChemChina and Jamuna would launch extensive cooperative projects in other areas of common interest.

BRDIRI president Li Gaoping promised that his company would honour the contract, complete the factory on time and to a high level of quality, and turn the project into a new centre of economic growth for the Jamuna Group, one that would also contribute to Bangladesh’s economic prosperity.

During their time in Bangladesh, the ChemChina delegation also held a meeting with Shamim Islam and Jamuna Group chairman Nurul Islam, at which the two parties exchanged views on the timetable for building the tyre plant, its future operation and market status. A visit was made to the project site to discuss preparations for the project.