Chemical unit at Karnaphuli Rayon Complex may be revived

KMP now buys part of the chemicals from a Bangladeshi company and imports the rest at high prices, which increases the cost of production.

The Bangladesh Chemical Industries Corporation (BCIC) is also considering handing over management of the chemical unit to the KPM, they said. BCIC owns the KMP and the assets of KRC.

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'The whole thing is in process and the plan will be implemented soon", an official at the KMP said.

"An amount of Tk three crore will be spent for this, Tk 2 crore for renovation of old machinery and Tk one crore for purchase of raw materials," he said seeking anonymity.

The KRC set up in 1953, was shut down on December 15, 2002 with assets of about Tk 200 crore after the industries ministry listed it as a sick industry due to loss.

KMP has to spend Tk 42,000 for one metric tone of Chlorine and Tk 28,000 for one MT of Caustic. The factory was shut for six days in February due to shortage of the chemicals, the sources said.

The 100 tonnes capacity KPM is now producing 40 to 50 tonnes of paper a day due to short and irregular supply of the two chemicals.

Once revived, the chemical plant will produce seven tonnes of Chlorine and five tonnes of Caustic daily, which will fulfil the demand of the paper mill.

Some sources at the KPM said that chemical plant will be run by 77 employees to be supplied from it, instead of plant's employees who lost their jobs following its closure.