Partial production resumes at 9 closed state-run jute mills, 9,500 jobs created

Production has partially resumed at nine of the 17 jute mills under the Bangladesh Jute Mills Corporation (BJMC) that have been leased to private operators, creating jobs for around 9,500 people.

Preparations are underway to reopen the remaining eight mills and bring the nine currently operating mills into full-scale production, with the combined move expected to create nearly 50,000 jobs.

The government has taken the initiative to reopen closed jute mills and other industrial establishments as part of its election pledges to increase employment, attract investment and ensure effective use of idle assets.

The process is also underway to lease three more BJMC mills to private operators: MM Jute Mill in Sitakunda, Chattogram; KFD Ltd in Rangunia; and Cooperative Jute Mill in Palash, Narsingdi.

According to BJMC, production has resumed at Bangladesh Jute Mills Ltd and UMC Jute Mills Ltd in Narsingdi; JJI Ltd and Carpeting Jute Mills Ltd in Rajaghat, Jashore; Daulatpur Jute Mills Ltd, Eastern Jute Mills Ltd in Atara, Khalishpur Jute Mills Ltd and The Crescent Jute Mills Co Ltd in Khulna; Mills Furnishings Ltd in Nasirabad, Chattogram; and Rajshahi Jute Mills Ltd in Shyampur, Rajshahi.

Of the 25 state-owned jute mills that were closed, 17 have so far been leased to private operators.

Jute Alliance Ltd took Bangladesh Jute Mills in Narsingdi; Akij Jute Mills Ltd took JJI Ltd in Rajaghat, Jashore; Winiworld Footwear Technology took Daulatpur Jute Mills Ltd in Khulna; Regal Jute Ltd took Carpeting Jute Mills Ltd in Rajaghat; B Sweaters Ltd took UMC Jute Mills Ltd in Narsingdi; Atlantic Jute Ltd took Eastern Jute Mills in Atara, Khulna; Four Emeralds Accessories took Mills Furnishings Ltd in Nasirabad, Chattogram; Radiant Pharmaceuticals Ltd took Khalishpur Jute Mills Ltd in Khulna; and Banga Building Materials Ltd of the PRAN-RFL Group took Rajshahi Jute Mills Ltd in Shyampur.

Shafi Motors Ltd took Galphra Habib Ltd in Barabkunda, Sitakunda, Chattogram; Chittagong Denim Ltd, in a joint venture with M/S Pronk Participati B.V., took Hafiz Jute Mills Ltd in Baro Aulia, Sitakunda; Habiganj Agro Ltd of the PRAN-RFL Group took R.R. Jute Mills Ltd in Bashbaria, Sitakunda; KDS Textile Mills Ltd took Gul Ahmed Jute Mills Ltd in Kumira, Chattogram; Biswas Poultry and Fish Feeds Ltd of the Mahbub Group of Industries took The Crescent Jute Mills Co Ltd in Khalishpur, Khulna; Multi-Line Industries Ltd of the PRAN-RFL Group took Jatiya Jute Mills Ltd in Raipur, Sirajganj, and Chandanimahal in Dighalia, Khulna; while Platinum Jubilee Jute Mills Ltd in Khalishpur, Khulna, was leased jointly to Abdullah Battery Company Pvt Ltd and Hamco Leathers Ltd.

Karim Jute Mills Ltd and Latif Bawani Jute Mills Ltd in Demra, Dhaka, are being handed over to the Bangladesh Economic Zones Authority (BEZA) for the planned development of economic zones.

Legal disputes are ongoing over BDCF Baghdad-Dhaka Carpet Factory Ltd in Chattogram and Alim Jute Mills Ltd in Khulna. Meanwhile, Amin Jute Mills in Sitakunda has been recovered, with its leaseholder expected to begin production by December.

State Minister for Textiles and Jute Md Shariful Alam told BSS that the previous government shut down the BJMC jute mills in 2020 and that, after the BNP government assumed office this year, it took initiatives to reopen the mills under private management.

He said the move aims to create jobs, stimulate economic activity and ensure proper use of idle assets.

The mills are being leased through transparent tenders under the public-private partnership (PPP) framework to attract domestic and foreign investors, with the government expecting the initiative to have a positive impact on the national economy.

The minister said the government is also encouraging investment in environmentally friendly jute and jute products by providing necessary support, including loan facilities.

Increased investment is expected to expand the use of jute, generate employment and reduce reliance on environmentally harmful polythene and plastic.

The Jute Diversification Promotion Centre (JDPC) is working to broaden the use of jute through government incentives, exhibitions of jute products at home and abroad, training for handicraft workers and support for overseas market expansion through Bangladesh missions.

Production at all 25 state-owned jute mills under BJMC was suspended on July 1, 2020, following persistent losses and their inability to remain competitive. The government subsequently decided to lease the mills to private operators for periods ranging from five to 20 years.