Bangladesh industrial sector : automobile parts to be exported to US market
Saturday, December 12th, 2009Bangladesh for the first time will export automobile parts and accessories products to the US market, steering in a new horizon in the country’s industrial sector. which is expected to boost up the light engineering industry.
Initially, three automobile samples- bumper bracket, rubber brush and suspension kits will be produced as part of the first order worth $15,000 for New Milbert International Inc, a US company.
Few other products –grill,piston, moulding, fender and mirror — will be exported to the US in phases.
On the basis of quality assurance of the spare parts, Bangladesh may get export orders worth billions of dollars to the potential US market, Industry Ministry sources said.
“Although the order worth 15,000 US dollar is small in size, it is just beginning of entrance to the US market.
If we can carry the initiative forward it will be easier to turn the country into a digital Bangladesh as envisioned by Prime Minister Sheikh Hasina,” said Industries Minister Dilip Barua at a function in connection with the MoU signing at the BITAC’s conference room here..
Bangladesh Engineering Industry Owners Association, Bangladesh Industrial Technical Assistance Centre (BITAC) and New Milbert International Inc yesterday signed a tripartite deal.
Industries Minister Dilip Barua was present at the signing ceremony.
“We are impressed by the potential of the local light engineering sector. We have ordered few samples of automobile accessories. If they can deliver the order successfully, a wide door will open for Bangladesh,” said Nishan Rahim, managing partner of New Milbert International.
Abdur Razzaque, president of BEIOA, Dr Ihsanul Karim, assistant director of BITAC, were the other signatories to the deal.
Dilip Barua said the government is working for turning Bangladesh into an industry-thrived country by discouraging stopping mills and factories like the previous governments did.
In doing so, he said, a draft of the long-cherished industry policy has already been formulated.
The present administration wants to play a facilitating role instead of regulator and that is why it plans to cut export tax of entrepreneurs, said Dilip Barua.
The industries minister underscored the need for ensuring quality of products rather than maximizing profit.
Nisham Rahim termed the order as a simple and said the order could be billions of dollars if the government provides the exporters with necessary supports including 10 percent cash incentive and low interest rates.
Dr Ihsanul Karim said there is no alternative to implement Vision- 2021 to make the country industrialized. He suggested for engaging the large number of the country’s manpower in the potential light engineering sector.
Abdur Razzaque claimed that the sample products to be exported to the US market are as good as the products of Taiwan and India.
He listed infrastructures and utility shortages as major hurdles in the way of making more foreign direct investment (FDI) in the country.
New Milbert International sources parts mainly from India and Taiwan and supplies them to the US market.
BITAC will provide equipment makers with support in designing and automation.
The light engineering sector has flourished from almost nothing to a multi-crore taka business since independence in 1971.
The sector makes products ranging from automated teller machine frames, pharmaceutical packaging machines, machinery for garment sector and rice mills, automobile spare parts, power looms and machinery for paint industry.
It also produces machinery for making ballpoint pens, furniture, bakery equipments, flourmills, CD and DVD covers, plastic baskets and carriers.
The sector manufactures around 10,000 types of items worth $120 million a year for the local industry.








