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Meghna Invests in Tyre and Tube Making Capacities

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DHAKA, Bangladesh – Meghna Rubber Industries Ltd is enlarging its manufacturing capacities. The company is investing US$ 1.2 million in extra tyre and tube making capacities. We are expecting the machines to arrive by July 2008, said Mr Mizanur Rahman (photo), Managing Director, Meghna Group said. Currently, the plant is manufacturing

Meghna Invests in Tyre and Tube Making Capacities

DHAKA, Bangladesh – Meghna Rubber Industries Ltd is enlarging its manufacturing capacities. The company is investing US$ 1.2 million in extra tyre and tube making capacities. “We are expecting the machines to arrive by July 2008,” said Mr Mizanur Rahman (photo), Managing Director, Meghna Group said. Currently, the plant is manufacturing

12,000 tyres and 4,000 tubes daily. As of July this will be increased to 20,000 tyres and 20,000 tubes. The plant was set up in 2003 and is located some 55 km north of Dhaka in district Tangail, Bangladesh.

“Our main advantage is the low price of rubber on our local market compared with our neighbouring countries, India & Sri Lanka. Therefore, it is a good business sense to manufacture in Bangladesh and export to the international market. Next to that our plants run on gas as this is cheaper in Bangladesh and easily available.”

Rising prices of tyres made in China

Meghna Rubber is focusing on the export market as the domestic market has been saturated in combination with the rising prices of tyres made in China. Currently most tires are delivered to their sister bicycle companies Meghna Bangladesh Ltd, Transworld bicycle Ltd and M & U Cycles Ltd. The company also exported tyres to Avocet Sports UK, Frank De Schemaeker Belgium, MBM Italy and Koner Automotive Turkey.

With the increasing capacity, the company intends to focus more on the export market, especially Europe. Depending on the response in the international market, Meghna plans to further expand the capacity by another 10,000 tyres/tubes by 2009.
 

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