China’s KPST to Invest $7 Million in Bangladesh Footwear Components Plant

Chinese manufacturer KPST is strengthening its presence in Bangladesh with a US$7.01 million investment in a new production facility in Chattogram. The project is expected to create approximately 200 jobs and increase the supply of footwear and bag-making materials to regional manufacturers.

The new unit, KPST New Material (BD) Co Ltd, will be established at BEPZA Economic Zone-1 in Mirsharai on a 7,200-sq metre site. The company formalized the project through a land lease agreement with the Bangladesh Export Processing Zones Authority (BEPZA) at the authority’s Dhaka complex on Wednesday.

The plant will produce a range of industrial supplies, including footwear accessories, foam, cutting boards, cutting dies, moulds, bag and luggage components, paper products and printed materials.

At full capacity, the facility is expected to produce 11 million pairs of footwear accessories annually, alongside 24,000 cubic meters of foam, 200,000 cutting boards and 250,000 cutting dies and moulds. The output will serve footwear producers in Bangladesh and overseas markets, particularly India and Cambodia.

KPST Director Zhang Youguo said the expansion was driven by growing demand and rising orders from the company's existing manufacturing operations. He indicated that the investment decision followed an assessment of the business environment at BEPZA and expressed confidence in the opportunities offered by the new facility.

The project marks another step in the company's expansion in Bangladesh. Its affiliated business, KPST Shoes (BD) Co Ltd, began production in November 2023 and became the first enterprise to commence export operations from BEPZA EZ-1.