Chinese company KPST raises its investment by 7 million dollars

The Chinese investor KPST will expand its business in Bangladesh by building a second factory in BEPZA Economic Zone 1. The company will invest 7.01 million US dollars in the project. The Bangladesh Export Processing Zones Authority (BEPZA) and the company signed a land lease agreement at the BEPZA Complex in Dhaka the day before yesterday.

The new project is called KPST New Material (BD) Company Limited. It shows that the company keeps its trust in BEPZA. It also shows that BEPZA offers investor friendly services and support. The factory will make footwear accessories, bag and luggage components, paper products and printed materials, along with other related items.

The factory will create jobs for about 200 Bangladeshi citizens. Mr. Md. Tanvir Hossain, a member of BEPZA, signed the agreement for BEPZA. Mr. Zhang Yugui, a director of KPST New Material (BD) Company Limited, signed it for the company. Executive Chairman Major General Mohammad Moazzem Hossain and other senior BEPZA officials attended the signing ceremony.

KPST will build the factory on 7,200 square metres of land in BEPZA Economic Zone 1. Each year, the factory will make 11 million pairs of footwear accessories and 24,000 cubic metres of foam. It will also make bag and luggage components, 200,000 pieces of cutting boards and 250,000 pieces of cutting dies and moulds.

The company will supply these products to shoe makers in India and Cambodia. It will also supply export oriented shoe factories in Bangladesh. KPST Shoes (BD) Company Limited has the same owner. It was the first company to start exports from BEPZA Economic Zone 1. It began production in November 2023.

The decision to set up a second project in the same economic zone shows the investor’s trust in BEPZA. It also shows the plan to expand production in Bangladesh. Mr. Zhang Yugui said demand and orders for products from the first factory keep growing. So the company decided to build another factory.

He said the company chose BEPZA for this expansion after it looked at the whole investment climate. He hopes the new project will open more chances to grow the business. BEPZA later split its economic zone in Mirsarai, Chattogram, into two separate zones. These are BEPZA Economic Zone 1 and BEPZA Economic Zone 2. The split helps BEPZA run administrative and operational work more effectively.

Until last month, 14 companies were running in BEPZA Economic Zone 1. Another 33 companies were under construction. So far, the zone has exported goods worth 68.29 million US dollars. Total investment has reached 98.83 million US dollars. The zone has given jobs to 4,428 Bangladeshis.