SS Steel to acquire another re-rolling mill

Deformed steel bar manufacturer SS Steel yesterday announced that it would acquire another factory, Al-Falah Steel & Re-Rolling Mills, and streamline its operations, all through an investment of around Tk 184 crore.

The listed company made the disclosure in a post on the Dhaka Stock Exchange (DSE) website, saying its board of directors had decided on making the equity investment on the mill situated in Narayanganj.

Of the investment, Tk 87.46 crore would be used to subscribe to around 99 per cent stake of the mill's existing equity shares.

The remaining Tk 96.68 crore will be used to ensure smooth operations of the mill. In return, the mill will issue new shares to SS Steel.

The investment will be sourced from the company's retained earnings and as loans from financial institutions.

SS Steel has an annual production capacity of around 108,000 tonnes, according to its website.

As for the mill, it is around 64,800 tonnes per annum, which it sells under its own brand.

SS Steel earlier acquired Saleh Steel Industries in 2020 with an investment of Tk 158 crore.

It also has three sister concerns – Fu-Wang Ceramic Industry, AJ Corporation and Generation Next Fashions.

In early January of 2021, the steel company had made another public disclosure saying it was acquiring a 75 per cent stake in Southeast Union Ceramic Industriesfor Tk 200 crore in an effort to expand its product base in the construction sector.