Two Chinese companies to invest $72 million in EZs

Chinese Kaixi Group has once again chosen the BEPZA Economic Zone (BEPZA EZ) as its preferred destination for expansion, announcing a $40.05 million investment in an intimate garments and related accessories manufacturing facility, while Lesso Group is set to invest approximately $32.772 million in establishing operations in Bangladesh.

The Bangladesh Export Processing Zones Authority (BEPZA) and Kaixi Garments Bangladesh Ltd, a concern of Kaixi Group, signed an agreement at the BEPZA Complex in Dhaka on Monday. Major General Abul Kalam Mohammad Ziaur Rahman, executive chairman of BEPZA, attended the signing ceremony.

Ashraful Kabir, member investment promotion of BEPZA , and Xiao Hongxi, chairman of Kaixi Garments Bangladesh Ltd, signed the agreement on behalf of their respective organisations.

Under this new project, the company will produce 18 million pairs of lingerie and undergarments and 20 million pairs of bra foam and bra cups annually, creating jobs for 3,003 Bangladeshi nationals.

Speaking at the event, Xiao Hongxi highlighted some operational challenges, mentioning that the absence of nearby worker housing forces them to bring workers from distant locations, which delays morning attendance. Despite such challenges, he reaffirmed Kaixi’s commitment to Bangladesh and to BEPZA EZ.

Kaixi’s first project in the BEPZA EZ, sanctioned in November 2022 with an investment proposal of $60.85 million, began commercial production in June 2024 and currently employs about 3,700 workers. Together, the company’s two existing factories, one in Dhaka EPZ and one in BEPZA EZ, have created jobs for approximately 6,000 workers.

Meanwhile, Chinese manufacturing giant Lesso Group is set to invest approximately $32.772 million in establishing operations in Bangladesh. The move marks a significant step in the company’s global expansion strategy, with plans to locally manufacture a wide range of products, including PVC and PEX pipes, solar panels, sanitary ware, kitchen components, doors and windows, water purifiers, waterproofing materials, fire-fighting equipment, cables, lighting, and environmentally friendly building materials.

The Bangladesh Economic Zones Authority (BEZA) has officially handed over 12.5 acres of land to China Lesso Group in the National Special Economic Zone, following the signing of a lease agreement earlier on 19 September 2024, according to a press statement issued by BEZA on Monday.

With a global workforce of about 20,000 employees and manufacturing bases in Indonesia, Cambodia, Thailand, Malaysia, and the Philippines, China Lesso reported an annual revenue of $974 million in 2024. The company’s entry into Bangladesh is expected to bolster the country’s industrial base and create substantial employment opportunities.

At the land handover ceremony, Chowdhury Ashiq Mahmud Bin Harun, executive chairman of BEZA, congratulated both parties and emphasised BEZA’s commitment to fostering an investment-friendly and innovation-driven industrial ecosystem.

“With the handover of this land, BEZA moves a step forward in creating a dynamic industrial environment. We hope that China Lesso’s investment will inspire other companies to invest in our economic zones,” he said.

A representative from China Lesso Group stated that the project would prioritise not only commercial returns but also the production of eco-friendly products, the use of renewable energy, and the development of a robust supply chain platform within Bangladesh.

The National Special Economic Zone, located along a 25-kilometer stretch of the coastline, is the largest planned industrial area in Bangladesh. It currently hosts around 15 operational industrial units, with several more under construction. The zone has been designed to integrate full urban management infrastructure alongside industrial development, creating a self-sustaining ecosystem for investment and growth.

BEZA and China Lesso Group both expressed optimism that this collaboration would significantly enhance the zone’s profile and attract further international investment.