In a step towards expanding Bangladesh's export market, Pran-RFL Group, one of Bangladesh's leading conglomerates, signed an agreement with China's Haitian Group to enhance its production capacity and boost exports of household plastic goods through a Tk 200 crore project.

The agreement was signed by RN Paul, managing director of RFL Group, and Xiang Linfa, vice-president of Haitian Group, at Six Seasons Hotel in the capital yesterday, aiming to import advanced machinery from China.

The event was attended by Toukirul Islam, deputy managing director of Durable Plastic Limited, Prodip Kumar Poddar, deputy managing director of Rangpur Metal Industries Limited, and Li Hufeng, general manager (sales) of Haitian Group.

Speaking at the event, RN Paul highlighted the current challenges in Bangladesh's investment climate, citing a slowdown in private sector investments due to economic uncertainties.

However, he emphasised that RFL's decision to expand production and enter new markets would send a positive signal for the country's industrial growth.

"This project will be implemented swiftly, and we are confident that it will make a substantial contribution to Bangladesh's export sector," Paul said.

"We expect to start production by May this year, creating employment opportunities for around 2,500 people. Additionally, this initiative is projected to increase our annual export revenue by approximately 30 percent," he added.

"Our company has undertaken a new investment project, which is a 100 percent export-oriented unit," said Kamruzzaman Kamal, marketing director of Pran-RFL Group.

"Under this project, we will produce plastic products on a large scale in Bangladesh and export them entirely to international markets," he said.

According to him, the current economic situation of the country is somewhat unstable, with the impact of the recession being observed in both domestic and international markets.

"In this scenario, we believe that a strong export-based initiative can make a significant contribution to the economy," Kamal said.

"We are investing approximately Tk 200 crore in this project. To implement the project, we are partnering with a renowned Chinese technology company that will supply advanced machinery," he added.

He said the investment would cover the procurement of high-end manufacturing equipment and the construction of a sophisticated facility.

He also stated that the funding for the project would be sourced from both RFL's own capital and bank loans.

The industrial park is located in Kaliganj, Gazipur, where the new production unit is being established. The factory will manufacture various plastic products that meet international standards, primarily targeting markets in North America and Europe.

"Our initial target is to produce plastic goods worth approximately $43 million, with plans to increase this amount in the coming years," Kamal said.

He further stated that they aim to commence production by April or May this year.

According to Kamal, export revenue is projected to increase by 30 percent, further solidifying RFL's position in the global market.

He also mentioned that despite the factory not being fully completed yet, the first set of export orders had already arrived, with an estimated value of $6 million.