Chinese firm KPST is set to invest $7.01 million to establish a second manufacturing facility in Bangladesh, focusing on the production of footwear accessories, bags, luggage components, paper products, and printed materials. The new factory will be located within the Bangladesh Export Processing Zones Authority’s (Bepza) Economic Zone-1 in Mirsarai, Chattogram.

The company signed a land lease agreement with Bepza in Dhaka on Thursday, as confirmed by both parties. The facility, to be named KPST New Material (BD) Co Ltd, will cover an area of 7,200 square meters and is expected to generate employment for approximately 200 Bangladeshis. The plant aims to serve footwear manufacturers not only in Bangladesh but also in India and Cambodia, supplying export-oriented factories across the region.

The facility’s projected annual production capacity includes 11 million pairs of footwear accessories, 24,000 cubic meters of foam, 200,000 cutting boards, and 250,000 cutting dies and molds, in addition to other components.

Md Tanvir Hossain, Bepza’s member for investment promotion, and Zhang Youguo, director of KPST New Material (BD) Co Ltd, signed the agreement on behalf of their respective organizations. Major General Mohammad Moazzem Hossain, Executive Chairman of Bepza, was present at the signing ceremony.

Zhang Youguo noted that the decision to open a second factory was driven by growing demand and increased orders received at the company’s existing facility. He cited Bangladesh’s favorable investment environment as a key factor in selecting the Bepza economic zone for the expansion.

Major General Moazzem Hossain welcomed the investment and commended KPST’s continued confidence in Bangladesh’s export processing zones, emphasizing the significance of the expansion for the country’s manufacturing sector.