Summary of Proposed Investment
Project Number
11766
Company Name
RAK CERAMICS (BANGLADESH) LTD
Date SPI Disclosed
Nov 6, 2002
Country
Bangladesh
Industry
Manufacturing
Projected Board Date
Dec 13, 2002
Status
Completed
Sector
Glazed Ceramic Tiles
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Dec 30, 2002
Signed : Feb 8, 2003
Invested : Feb 28, 2003
Project Description
RAK-Bangladesh is the largest ceramic tiles manufacturer in Bangladesh. It started its operations in November of 2000 with a manufacturing capacity of 2.0 million square meters per annum (sqm p.a.) of tiles. The proposed project involves expansion of the existing ceramic tiles manufacturing capacity to 4.0 million sqm p.a. and setting up a 250,000 pieces p.a. sanitaryware plant.
The proposed project will enable an internationally competitive local enterprise in the sanitaryware and ceramic tiles sector to expand. It will stimulate usage of the abundantly available, domestic raw materials such as clay and silica sand, as well as natural gas. The venture will create up to 300 direct jobs. Initially, RAK-Bangladesh’s production will be mostly for the local market: the project will contribute to import substitution and consumers will gain substantially thanks to lower prices resulting from the investment. The company plans to export to neighboring countries at a later stage. The project will also stimulate transfer of most advanced production technology, know-how and local staff training by a leading European equipment manufacturer and experienced sponsor.
IFC’s role in the proposed project involves: providing long-term financing that would otherwise be difficult to mobilize from the local banks only; providing comfort to local banks and/or other financial institutions to lend to the company; supporting a healthy, local, internationally competitive producer; and ensuring that RAK-Bangladesh conforms to high standards of environmental, safety and social consciousness, as well as to improved corporate governance.
The proposed project will enable an internationally competitive local enterprise in the sanitaryware and ceramic tiles sector to expand. It will stimulate usage of the abundantly available, domestic raw materials such as clay and silica sand, as well as natural gas. The venture will create up to 300 direct jobs. Initially, RAK-Bangladesh’s production will be mostly for the local market: the project will contribute to import substitution and consumers will gain substantially thanks to lower prices resulting from the investment. The company plans to export to neighboring countries at a later stage. The project will also stimulate transfer of most advanced production technology, know-how and local staff training by a leading European equipment manufacturer and experienced sponsor.
IFC’s role in the proposed project involves: providing long-term financing that would otherwise be difficult to mobilize from the local banks only; providing comfort to local banks and/or other financial institutions to lend to the company; supporting a healthy, local, internationally competitive producer; and ensuring that RAK-Bangladesh conforms to high standards of environmental, safety and social consciousness, as well as to improved corporate governance.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Dr. Khater Massaad, General Manager
RAK Ceramics UAE, PO Box 4714, Ras Al Khaimah, UAE.
Phone: 971-7-244-5046
Fax: 971-7-244-5270
RAK Ceramics UAE, PO Box 4714, Ras Al Khaimah, UAE.
Phone: 971-7-244-5046
Fax: 971-7-244-5270