The 19-year-old steelmaker will invest a total Tk 158.75 crore in Saleh Steel. Of the sum, Tk 24.75 crore would be equity investment for its 99 percent stake. Another Tk 134 crore would be invested for the smooth operation of the company.
Established in 1995, the capacity of the Saleh Steel Industries, which churns out a range of mild steel (MS) rods and coils, is about 84,000 tonne per year.
The new investment alone is expected to increase SS Steel's turnover by about Tk 500 crore a year, which can potentially increase the profitability of the company substantially, it said in a posting on the website of the Dhaka Stock Exchange.
In the 2018-19 financial year, SS Steel's turnover was Tk 415 crore and profit Tk 51.91 crore, up 69.7 percent year-on-year. In the first half of the 2019-20 financial year, its profit stood at Tk 32.3 crore.
"We are acquiring Saleh Steel as it has great potential and great brand value," said Md Mostafizur Rahman Sazzad, company secretary of SS Steel.
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