Mkt 1z2y49

The market of aluminium extrusion products used in doors, windows and curtain walls has been growing rapidly as wood is getting scarce by the day. Nearly half a dozen companies have hit the market in the past two years to cash in on the growing market size now estimated at around Tk 600 crore a year. Of the new entrants, PHP Group, which is one of the biggest conglomerates in the country, is the latest, and started selling products in February. Aramit, Nikki Thai, Bikrampur and Dhaka Thai are some other companies, which have come into the market in recent years. “It is less capital intensive and matches with our existing product line, such as float glasses,” said Mizanur Rahman, head of marketing of PHP Float Glass and PHP Aluminium, explaining the group's entry into the business. PHP is producing “-quality” aluminium extrusion products. Aluminium extrusion products like doors, windows, staircase handrails and s, railings for verandas and corridors have become popular. The use of aluminium in business and office complexes, buildings, theatres as well as decorative purposes is common. Shops built with lighter materials are also consuming aluminium products. Market players said the advantages of aluminium such as lightweight, strength, corrosion resistance, durability, easy in fabrication, attractive appearance and easy maintenance make it a popular material for use in modern buildings. “The market is growing at a double digit rate. Scarcity of wooden materials has been prompting buyers to go for aluminium extrusion products,” said SM Sohrab, senior manager, sales of Bangladesh Thai Aluminum (BD Thai), one of the two biggest players in the market. After KAI Bangladesh Aluminum, BD Thai has the largest share in the market. Chung Hua (former FuWang Aluminum) and Dhaka Thai are other major players. KAI Aluminum, which started production in 1997 with an annual capacity of 6,000 tonnes, has set up a second plant with over 5,000 tonnes of capacity a few years ago to meet the growing demand. BD Thai is the oldest company established in 1979 under a t venture with a Thai businessman. Since then it is known as Thai Aluminum in Bangladesh. Although the market has been expanding steadily, players are concerned with the quality as some manufacturers are marketing low-cost items. “Lower end consumers are going for low-cost products, which is very risky,” said a senior official of KAI. Low-cost items are made of around 1 mm (millimetre) thickness against the standard thickness of minimum 1.5 mm, according to major players. “We are also making low-cost items in line with the demand,” said a BD Thai official.

Demand for aluminium in Bangladesh real estate sector is on the rise, although at a slow rate Building and construction sector has always been a key end sector for aluminium industry in the Indian subcontinent. But while infrastructure has experienced a boom in rest of the region, the growth has been pretty sluggish in Bangladesh. This has had its impact on the country’s aluminium industry which logged a slow growth after having recovered from the real estate setback.

As per industry sources, Bangladesh aluminium industry grew at only four-to five per cent rate over the last two to three years compared to around 15 per cent growth it ed before real estate slowdown began in 2011. What contributed to this slow yet unusual growth? - The use picked up in the industrial sector and rural areas where opportunities remained largely unexplored until very recently. Bangladesh construction sector started making use of aluminium in small scales just before the beginning of the new millennium. At that time there were only three or four companies which supplied aluminium construction materials, commonly known as Thai aluminium, to the market. The number has increased to nine over the years. Today, even people living in the rural areas are finding interest in the metal due to its durability, lightness, structural flexibility, contemporariness and costeffectiveness. The most commonly used aluminium construction materials include doors and window frames, partitions, swing doors and sliding doors, corners, signboards, and curtain walls. The key vendors in the domestic market are KAI-Altech group, Chung Hua Aluminium Industry Ltd and Bangladesh-Thai Aluminium Limited. "Use of the products in rural areas is on the rise, contributing to the steady growth," KAI Bangladesh Aluminium Ltd deputy managing director Al Amin Murshed said, adding that the leading Bangladeshi aluminium companies are also expanding their product lines for the industrial and automobile sector. Chung Hua Aluminium's general manager S M Aslam said the nine companies presently operating in the aluminium construction materials market use their 95 per cent capacity on an average to produce around 25,000 tonnes of aluminium in a year in order to cater to the local demand. The companies source their raw materials and technology from countries like China, Russia, Malaysia, and Africa. A limited volume of their products is also exported to countries like Nepal, Bhutan and Singapore. Bangladesh Thai Aluminium Limited, a pioneer aluminium industry in the country, will set up a new plant to double its production. The listed company will go for production immediately to meet the increased demand for products. The company has decided to install a new plant named Extrusion Press (Unit-III) worth Tk4 crore, said the company in a statement. “With this new production line, the production capacity of the factory will be doubled and as a result the profitability will also increase,” it said. All existing facilities of infrastructure, land and other complimentary production units will also be revamped. With its more than thirty years of experience in aluminium industry, BTA has positioned itself in the high end aluminium market of Bangladesh. Its products are also being exported to countries like USA, Singapore, UAE and India. Products are virtually used in all the prestigious and important buildings in Bangladesh like parliament, central bank, municipality and airports, according to the company.

Listed in 1990, the company’s majority shareholders are from general public who held more than 75% stake. Yesterday, share price of the B-category company closed at more than Tk33. Its products include fabricating doors, windows, false ceiling, curtain walls, partitions and furniture. Other items produced by the company may include railway coach windows, ladders, bolts and allied items. According to its financial statement, the company’s net profit in the 3rd quarter this year stood at Tk92 lakh, a drop of nearly 37% in the same period a year ago.