Chinese company to invest $7m to make footwear accessories, luggage components
The factory will occupy 7,200 square metres of land and supply products to footwear manufacturers in India and Cambodia, as well as export-oriented footwear factories in Bangladesh.
Chinese company KPST will invest $7.01 million to establish a second manufacturing facility in Bangladesh, producing footwear accessories, bag and luggage components, paper products and printed materials.
The new facility, KPST New Material (BD) Co Ltd, will be set up in the Bangladesh Export Processing Zones Authority's (Bepza) Economic Zone-1 in Mirsarai, Chattogram, creating employment for 200 Bangladeshi nationals, according to a press release.
The company signed a land lease agreement with Bepza in Dhaka today (14 October).
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The factory will occupy 7,200 square metres of land and supply products to footwear manufacturers in India and Cambodia, as well as export-oriented footwear factories in Bangladesh.
The facility will have an annual production capacity of 11 million pairs of footwear accessories, 24,000 cubic metres of foam, 2,00,000 cutting boards and 2,50,000 cutting dies and moulds, alongside other products.
Md Tanvir Hossain, member for investment promotion at BEPZA, and Zhang Youguo, director of KPST New Material (BD) Co Ltd, signed the agreement on behalf of their respective organisations. Bepza Executive Chairman Major General Mohammad Moazzem Hossain witnessed the signing ceremony.
Speaking at the ceremony, Youguo said the company had decided to establish a second factory in the zone in response to growing demand and increased orders for products manufactured at its first facility.
He said the company had chosen Bepza for the expansion after considering the overall investment environment.
Welcoming the investment, Major General Moazzem praised KPST's continued confidence in the authority and its decision to expand its operations in Bangladesh.
KPST Shoes (BD) Co Ltd, an affiliated company under the same ownership, was the first enterprise to begin export operations from Bepza EZ-1. Its factory has been in production since November 2023.
