Quality raw materials prerequisite for quality products

Chattogram-based Mostafa-Hakim Group rose to prominence through shipbreaking, which is the source of raw materials for steel products. In the '90s, the conglomerate started manufacturing steel products by itself. In addition, Mostafa-Hakim Group has 15 subsidiaries in the construction industry, including brick, cement, textile, oxygen and LNG.

Golden Ispat Ltd and HM Steel and Industry Ltd — two subsidiaries of Mostafa–Hakim Group — have captured a large part of the 60-grade rod market. 

In an interview with The Business Standard's Mahfuza Rahat Nowshin, Mostafa-Hakim Group's Director Mohammad Sarwar Alam spoke about the group's future plans, obstacles it is facing, and current and future trends in the steel industry.

How did Golden Steel Ltd and HM Steel start their journeys in the steel sector?

Considering the growing demand for steel, Golden Iron Re-Rolling Mills was established in 1985 by Mostafa-Hakim Group, a construction material manufacturing company. Later in 1990, Golden Steel Re-Rolling Mills was set up. The manual rod produced by both the companies is appreciated in the country.

Mostafa-Hakim Group established the Golden Ispat Ltd in Sitakunda of Chattogram in 2017 by utilising long-term experience and modern technology, where rods are produced by automatic machines.

In 2020, HM Steel and Industry Ltd, a high-quality steel manufacturing plant, was set up on 25 acres of land at Anwara, Chattogram, considering increasing demand and strong customer confidence.

What are the production capacities of Golden Steel and HM Steel?

Golden Steel has an annual production capacity of 2.5 lakh tonnes. HM Steel's production capacity is 4.5 lakh tonnes annually.

The total annual production capacity of the two mills is 7 lakh tonnes, where 2,000 people are employed.

Apart from steel, what products does Mostafa-Hakim Group manufacture?

Mostafa-Hakim Group has been dealing with the shipbreaking industry. Apart from steel, it produces construction materials such as cement, bricks, and is also engaged in the oxygen, LPG, textile, real estate and import-export sectors. 

Currently, our industrial group has around 6,000 employees in 15 sister companies. Angle, channel, square bar and flat bar will be added to the production this year.

What kind of challenges is the steel sector currently facing?

The steel sector is currently facing various obstacles due to the economic crisis in the country and globally. There is a scarcity of raw materials due to the dollar crisis. Bank interest rates are subject to variation and risk. Production is disrupted due to shortages of electricity and gas. 

Trade has been affected due to the dollar crisis and unstable exchange rates. I think, in the development of this industry, supportive policies should be formulated by all the institutions concerned.

Tell us about the prospects of the steel sector.

The demand of the steel industry in the country depends on two plans –implementation of the ADP (Annual Development Programme) plan of the government, and the infrastructure development programme of the government, and the demand at the individual level. 

Around 60% of the total demand for steel is used in the implementation of government infrastructure development plans, whereas the demand at private level is 25% and in the private sector 15%. It is expected that this demand will increase rapidly in the coming years. By 2030, the country's steel demand will increase to 1.8 crore tonnes.

What are the future plans of Mostafa-Hakim Group in the steel sector?

The contribution of quality construction materials to sustainable and improved infrastructural development is immense. It accelerates the economy and better life for future generations of the country. Based on these values, we are continuously working on manufacturing and marketing the highest quality products. 

We are working on a plan to sustain and strengthen the construction industry by producing world-class products in the future through the use of advanced technologies that are more environmentally-friendly. Our aim is not only to manufacture state-of-the-art steel-related products, but also to do a hundred percent work in the service of the country and humanity. 

What is the difference between golden steel and HM steel rods compared to other rods?

Two companies of Mostafa-Hakim Group are using world class state-of-the-art DHR technology in steel production. DHR technology is one of the advanced production technologies in the global steel sector, which represents energy-saving and environment-friendly production.

Good quality raw material is a prerequisite for producing quality steel products, and the Board of Directors of Mostafa-Hakim Group believes in this principle. Mostafa-Hakim Group has its own eight shipyards, from which the best raw material is selected and used for rod production. Besides, raw materials are imported from the developed world and used in the production of rods.

Tell us about the CSR activities of Mostafa-Hakim Group.

Mostafa-Hakim Group's business objective is not only to gain financially. From social responsibility, it also aims to work to fulfil the basic rights like food, clothing, shelter, education and medical care of the people living in society to improve their standard of living. With that aim, Alhaj Mostafa Hakim Foundation was established in 2002 and Alhaj Hosne Ara Welfare Trust was formed in 2019. The two foundations are implementing various social service programmes to serve the people. As of June 2023, around 99 service organisations have worked under these two foundations.

There are more than 15,000 students in a dozen schools, colleges and madrasas, and over one lakh people are receiving multi-dimensional services annually through the two foundations.

Sketch: TBS