Singer Bangladesh has started the commercial production of home appliances at its new plant, becoming the first company to operate in the Bangladesh Special Economic Zone (BSEZ) in Araihazar of Narayanganj.

The Bangladesh Economic Zones Authority (BEZA) on Monday approved the commercial production, as reported by the company on the Dhaka Stock Exchange website.

Kazi Ashiqur Rahman, company secretary of Singer Bangladesh, said the trial run at the new factory began in June 2024. However, subsequent political turmoil delayed other production-related construction, machinery imports and installations.

The new facility, established with a $78 million investment from Turkish multinational Arcelik -- which holds the majority of shares of Singer Bangladesh -- is designed to reduce reliance on imports by locally manufacturing over 90 percent of its components.

"We are starting with an initial workforce of 2,000 employees. Once the project is fully implemented, we anticipate expanding our team to as many as 4,000," Rahman said.

This new facility will serve as a comprehensive manufacturing centre, producing a full line of home appliances, including refrigerators, televisions, air conditioners, washing machines and more.

He added that this diverse production capability would drive the company's market share expansion in the coming year.

According to Singer Bangladesh, the plant has the capacity to produce up to 1 million refrigerators annually.

Rahman further said that while their Savar plant does not have modern machinery, the new facility, which covers 35 acres, is equipped with the latest equipment to ensure that products meet global standards.

"By focusing on consumer needs, Singer Bangladesh is transforming its operations to offer contemporary, globally standard products to local customers," Rahman added.

As one of the largest retailers of consumer durables in Bangladesh, Singer offers brands like Singer, Beko, and others, with 463 retail stores and over 1,000 dealer shops nationwide.

Arcelik owns 57 percent of Singer Bangladesh, with the remaining shares publicly traded. The company's stock closed at Tk 107 yesterday, marking an increase of 2.59 percent compared to the previous day.

Since its listing on the Dhaka Stock Exchange in 1983, the company's paid-up capital has reached Tk 98 crore, with its market capitalisation standing at Tk 1,465 crore.

The company reported a loss of Tk 49 crore in 2024, a significant reversal from the profit recorded in the previous year.

As a result, its loss per share was Tk 4.91, down from earnings per share of Tk 5.24 in 2023, according to a disclosure on the Dhaka Stock Exchange website.

Chowdhury Ashik, the executive chairman of BEZA, expressed optimism about the BSEZ, highlighting its potential to become a model zone and a game-changer, particularly due to its operation by Japanese Sumitomo Corporation.

He said the strategic location and availability of a skilled workforce would enable this zone to reach full occupancy more rapidly than other government zones.

"We will commence the second phase of the zone immediately after completing the first phase," he added.

Praising Sumitomo Corporation, Ashik elaborated on their efficiency and efforts in attracting quality investments.

A senior BEZA official mentioned that they have developed 380 acres of land for industrial setup out of the 500-acre BSEZ.

He also noted that, except for Singer, six other industries from the UK, Japan, and Germany are planning to start operations soon.

He added that about a dozen foreign companies are at various stages of investment in this zone, with interest coming from Bangladesh, Japan, and the UK, including car manufacturers.

Authorities hope to attract $1 billion in foreign direct investment within the next five years.

The official also mentioned that all utility services, including power, water, and gas, are available at the BSEZ.