Bangladesh-based BSRM Steel Mills will merge with its parent company BSRM Ltd, to help the steel rod producer reduce costs and boost profits.
BSRM Steel has can produce 700,000mt of steel per year. The parent company, established in 1960, manufactures mild steel products and has a yearly capacity of 400,000mt through its rerolling mills. BSRM Steel Mills also produces billet used in rod manufacturing since 2016 with output at 860,000mt per year.
The merger came into effect beginning Feb 1 and marks the second merger following the 2017 joining of BSRM Steel and BSRM Iron and Steel. BSRM Steel Mills exclusively produces raw materials for BSRM Ltd and does not sell products in the outside market, negating the need to operate it separately going forward, according to media reports.