Japanese firm to invest $10m in Meghna economic zone

January 05, 2019 Business
Japanese Sakata Inx is set to invest $10 million to establish a liquid ink manufacturing plant in the Meghna Industrial Economic Zone (MIEZ), a development that can reduce the country's import dependency of the product.

At present, the packaging industry imports liquid ink worth about Tk 2,200 crore a year, according to Paban Chowdhury, executive chairman of Bangladesh Economic Zones Authority.

“This investment will help in cutting down imports and saving foreign currency,” he added.

The Osaka-based company is one of the leading printing ink manufacturers in the world and will be investing in the Bangladesh venture through its Indian subsidiary.

The company, which signed the land lease agreement with the MIEZ yesterday, is aiming to go for commercial operations within 18 months, said VK Seth, chairman of Sakata Inx (Bangladesh).

Initially, the plant will churn out some 6,000 tonnes of liquid ink per year to meet the growing demand for the item, which is now being imported, he said.

The venture will create at least 100 jobs, Seth added.

The Miez is attracting foreign direct investment thanks to its world-class business environment, said Mostafa Kamal, chairman and managing director of Meghna Group that owns the economic zone.

Indian investment in the pipeline for its neighbouring country now stands at $10 billion, said Harsh Vardhan Shringla, Indian high commissioner to Bangladesh. More investment will flow in once three Indian economic zones in Mongla, Bheramara and Mirsarai are operational, he added.

The Mongla economic zone is expected to be complete by 2020, according to Chowdhury.

Tanveer Ahmed Mostafa, director of Meghna Group of Industries, and Seth inked the deal on behalf their respective organisations.