Army plans to turn defunct Jalil Textile Mills site into defence export hub

Infographics: TBS

The Bangladesh Army plans to transform the 54.99-acre site of the defunct Jalil Textile Mills in Chattogram into an export-oriented defence manufacturing hub, following the formal handover of the land today (27 August).

The 54.99-acre site at Bhatiary was handed over by the Bangladesh Textile Mills Corporation (BTMC) to the Bangladesh Army for expansion of the Bangladesh Ordnance Factory (BOF), the country's second modern arms manufacturing facility after the one in Gazipur.

An agreement between the commerce ministry of and BOF was signed at the Jalil Textile premises to formalise the handover. Commerce and Industries Minister Khandaker Abdul Muktadir Chowdhury and Chief of Army Staff General Waker-Uz-Zaman attended the event.

General Waker said the expanded factory would produce weapons and ammunition not only for domestic defence needs but also for export. "We are not only trying to meet our own defence requirements. We want to transform this into an export-oriented industry."

The army chief said the location was chosen partly because of its proximity to Chattogram Port, which would make it easier to export defence products to international markets.

Bangladesh already has international demand for some products manufactured by its defence industry, including assault rifles and ammunition, he added.

However, the existing system of obtaining export approval on a case-by-case basis could hinder efforts to develop a competitive export-oriented industry, General Waker said.

"If you want to export something, you have to send a letter and wait for approval for one and a half to two months. This way, no export-oriented industry can expand," he said.

He called for a clear policy framework that would allow defence products to be exported while ensuring accountability over buyers and destinations.

General Waker said the factory would manufacture equipment and ammunition for all three services of the armed forces, as well as the police, Ansar and other paramilitary forces. "We can't fight a war by importing everything. We have to manufacture what we need."

Muktadir backs exports

Commerce Minister Muktadir at the event said the project is not only relevant to domestic requirements, it certainly has export potential. 

He said Bangladesh could utilise technologies and research already developed elsewhere while also investing in its own research to develop competitive defence products.

Responding to the army chief's concerns over export approvals, the Muktadir said, "You have said that you need export permission from the government. We are fully on board."

He added that exporting defence products would place Bangladesh at a different level in terms of defence and industrial capability.

Workers protest during handover

The land handover triggered protests by former workers of Jalil Textile, who gathered at the factory gate during the programme and demanded payment of their long-outstanding dues.

The workers said they had been waiting for their dues for around 22 years since the mill was shut down. According to worker representatives, 1,073 former workers are yet to receive their outstanding payments, while around 375 have died awaiting settlement.

Mosiud Dowla, president of the Jalil Textile Workers Trade Union, said government officials had assured them that their dues would be paid before the land was handed over.

"We met the finance and industries ministers, who assured us the dues would be paid before the handover. But BTMC handed over the land without paying us," he said.

He added, "In a letter to Army Headquarters, BTMC asked the Army to pay Tk21 crore in utility and other dues, but did not mention the workers' dues. This is injustice."

Noor-E-Khaja Alamin, director (Finance and Audit) at BTMC, told The Business Standard that the industries ministry had taken responsibility for settling the workers' dues.

"The minister has already given a date to meet the workers' leaders. If the workers are found to have any legitimate dues after verification, the ministry will pay them," he said.

The Tk21.67cr in liabilities

Jalil Textile Mills began operations in 1961 but was shut down in 2004 after incurring losses.

The Cabinet Committee on Economic Affairs on 1 July 2026 gave in-principle approval to transfer or sell the site to the Army at a symbolic price, subject to settlement of dues.

In a letter dated 3 August, BTMC identified Tk21.67 crore in outstanding liabilities and assessed the value of Jalil Textile's buildings, factory structures and plantations.

The liabilities include Tk1.77 crore land tax, Tk10 lakh union tax, Tk13.64 lakh electricity bills, and Tk2.65 crore gas bills. 

The mill also owes Tk7.04 lakh to Rupali Bank, Tk1.54 crore ADB loans, Tk2.70 crore other receivables, Tk7.91 crore current accounts and Tk64.16 lakh long-term ADB liabilities.

A chartered accountancy firm valued the mill's buildings, factory and other structures at Tk1.50 crore, while trees and plantations were valued at Tk2.66 crore. BTMC asked the Army to deposit the amount into its current account at Sonali Bank.