SS Steel to Invest $16.7 Million to Acquire 75% Stake in Southeast Union Ceramics
Bangladesh: SS Steel Limited, a listed engineering company, has announced plans to acquire 75% of Southeast Union Ceramics Industry Limited, the largest coal-based ceramic company in Bangladesh. The acquisition, valued at Tk200 crore ($16.7 million), awaits shareholder approval at an extraordinary general meeting (EGM), with details to be disclosed at the meeting.
Southeast Union Ceramics, located in Bagerhat, is a China-Bangladesh joint venture established in 2016 with an investment of Tk950 crore ($80 million approximately). The company, under Chinese management, produces 4.3 lakh square feet of tiles daily and employs 1,050 workers, including 50 Chinese nationals. It markets tiles locally under the Seucl and Fondi brands, sourcing raw materials from China, Malaysia, Indonesia, Vietnam, and India.
SS Steel’s Chairman, Javed Opgenhaffen, expressed confidence in the growth potential of the ceramic sector, particularly in tiles manufacturing, noting the opportunity for strong performance in both local and international markets. He stated, "After the completion of purchase, shareholders will benefit from this investment."
Southeast Union Ceramics Chairman SM Amzad Hossain declined to comment on the acquisition. SS Steel, which previously acquired Chattogram-based Saleh Steel Industries Limited for Tk160 crore ($13.4 million), has seen its share price rise 59% in the past month, reaching Tk22.80 ($0.19) on the Dhaka Stock Exchange.
The ceramic industry in Bangladesh, with a total investment of Tk8,958.70 crore ($752 million), has experienced 200% production growth over the last decade. It encompasses 66 brands across tableware, tiles, and sanitary ware, employing around 5 lakh people directly and indirectly. Industry leaders, including RAK, Monno, and Fu-Wang, have driven this growth, with increasing focus on tiles and sanitary ware. The Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) predicts that the ceramic sector will become the country's third-largest export sector by 2024, following garments and leather.
Source: TBS News