Progress in exports during Corona, investment of 10 million dollars in the new factory by a Chinese medical company

At least 2,000 people have been targeted for employment in this 21,000 square feet factory, the officials said.

Chinese company Jihong Medical Products Bd Ltd started production in 2019, just six months before the start of the coronavirus pandemic lockdown in Bangladesh.

The global demand for medical products suddenly increased during the pandemic. Utilizing this opportunity, the company began to increase the range of production in the Chittagong Export Processing Zone (EPZ). At the same time, exports also increased.

The Chinese company is investing USD 10 million in the BEPZA Economic Zone established in Bangabandhu Sheikh Mujib Shilpanagar in Chittagong's Mirsrai in just three years. At least 2,000 people have been targeted for employment in this 21,000 square feet factory, the officials said.

In April 2017, Kunshan Jihong Nonwoven Product Co., a Chinese surgical product manufacturer, registered with the Bangladesh Export Processing Zone Authority (BEPZA). Ltd. In 2003, a Chinese citizen named Dong Weinji established this factory in Kunshan City, Jiangsu Province.

Two and a half years after its registration in BEPZA, the factory set up on an 8-acre plot went into operation in September 2019.

Although the company manufactures various types of medical products including surgical masks and gowns in China, the company emphasizes the production of medical gowns in its factory in Bangladesh. At present, isolation gowns, patient gowns, scarpe gowns, scrub suits, and lab jackets are manufactured in the country's factories. Also manufactures Cap, Su-Cover, and Cover All. 80 percent of the total production is gowns. The remaining 20 percent are caps, shoe covers, and other products.

Tanveer Mohammad Sajjad, Manager (Trade) of Jihong Medical Products BD Limited said, "The epidemic started within a few months of the start of production in our factory. Then the demand for our products increased. We also increased the range of exports."

He also said that in the beginning, with only 100 manpower, 1-2 lakh pieces of products were produced per month. About 350 people are currently employed. Monthly production reaches 3-4 lakh pieces.

According to the Bangladesh Export Processing Zone Authority (BEPZA), the company exported 187,245 US dollars in the first four months after its launch, i.e. from September to December 2019

In the beginning, the products were exported only to the Netherlands and France. Then there was a shortage of this product due to the outbreak of epidemics around the world. Then the countries affected by coronavirus infection like the USA, Italy, Denmark, Norway, Spain, and Canada started to be added to the export list.

In the three months from January to March 2020, the export income almost doubled to 3 lakh 10 thousand 221 US dollars. After that, only the export income increased.

This year, from April to June 1 crore 52 lakh 61 thousand 691 US dollars, in July-September 54 crore 53 lakh 85 thousand 134 dollars and in October-December 49 crore 90 lakh 90 thousand 866 US dollars.

The first six months of 2021 i.e. January-June 1075.24 million US dollars (1075.2 million 40 thousand 12 dollars) and the last six months July-December 1236.60 million US dollars (123 crore 66 lakh 6 thousand 329 dollars) either here.

In January-June 2022, the export income was 1352.81 million US dollars (135 crore 28 lakh 11 thousand 913 dollars). Non-oven products are manufactured in two factories of the company in China and Bangladesh. These products are for single use.

Non-woven fabric and elastic are used as raw materials. The fabric is brought from China. The company is planning to produce non-woven fabric in the new factory in BEPZA Economic Zone.

Jihong Medical Products BD Limited General Manager Trish Wang told The Business Standard, "During the pandemic, I looked for a ready-made building within the Chittagong EPZ to expand the scale of the factory, but could not find it. I have taken registration to set up a factory in the BEPZA Economic Zone at the end of 2020."

"There is an investment of USD 10 million in the construction of a factory covering an area of about 21,000 square feet. The new factory is targeted to start production by the end of 2023."

He mentioned that raw material non-woven fabric will also be produced in that factory along with useful products. "Its production will reach 7-8 lakh pieces per month by doubling the current production capacity," he said.

He also said, "We have decided to set up a factory in Bangladesh due to cheap labor prices, political stability, and a favorable environment for production. And Chittagong has been selected as a place to utilize the facilities of the port city."

Source: Online