How GPH Ispat Produces the Strongest Rods in the Country: GPH Ispat Green Factory

One of the leading players in this industry is GPH Ispat. Since its inception in 2006, the company has become a respected name in the steel sector of Bangladesh, known for producing high-quality rods and various steel products while maintaining a strong commitment to environmental sustainability.

GPH Ispat is the first company in Asia and the second in the world to adopt the most modern and environmentally friendly green steel production technology. The company has also constructed a large artificial lake within its factory premises to store rainwater collected from the surrounding hills through a rainwater harvesting system, ensuring year-round usage.

Moreover, GPH Ispat’s production process utilizes nearly 100% recycled materials. With the integration of cutting-edge technology, rainwater harvesting, solar power generation, and the use of recycled inputs, GPH Ispat has positioned itself as a pioneer in carbon credit trading in Bangladesh.

Overview

GPH Ispat began its journey under the leadership of Mr. Mohammad Jahangir Alam. After graduating from Government Commerce College in Chattogram in 1980, Mr. Alam started his career at a private company. After gaining several years of corporate experience, he left his job with a firm determination to become an entrepreneur. In 1987, he partnered with his brothers to establish an import-based business named ‘Jahangir & Others’, dealing in construction materials such as iron, cement, and bitumen.

In the mid-1990s, they entered the cement production industry through a partnership with Molla Salt Group and went on to establish MI Cement Factory (Crown Cement) in 1994 at Mukterpur. Later in 2000, Mr. Alam acquired a manual re-rolling mill in Chattogram and began producing rods. In 2006, he rebranded his steel business and named it ‘GPH Ispat.’

GPH Ispat officially began production in 2008 with an initial annual capacity of 84,000 metric tons of MS billet and 120,000 metric tons of MS rod. In 2009, the company was converted into a public limited company. In February 2012, GPH Ispat launched its Initial Public Offering (IPO) and got listed on both the Dhaka and Chattogram Stock Exchanges.

Following this, Mr. Jahangir Alam gradually founded several other companies such as GPH Power Generation, GPH Oxygen, GPH Ship Builders, GPH Agro, and Eco Ceramics. Currently, he serves as the Chairman of GPH Group, Crown Cement Group, and Japan Metal Bangladesh Ltd. He is also the managing director of Star Allied Venture, and serves as a Director for several companies, including Premier Cement, Asia Insurance, and Chartered Life.

Today, under the visionary leadership and smart decision-making of Mr. Mohammad Almgir Kabir, the current Chairman of GPH Ispat, the company continues to thrive and progress steadily. Additionally, Mr. Mohammad Almas Shimul, the Additional Managing Director, plays a vital role in sustaining GPH Ispat’s world-class factory operations, ensuring top-notch product quality, and significantly impacting sales, marketing, and the overall growth of the company.

In 2016, GPH Ispat began constructing a new steel plant in Sitakunda, Chattogram, with an annual production capacity of 1 million tons. After years of preparation, production at this expansion plant officially began in 2021. The most remarkable feature of this facility is that it became Asia’s first plant to manufacture rods using both Quantum Electric Arc Furnace and Winlink Technology. Following this milestone, GPH Ispat introduced a new product line under the brand name “GPH Quantum.”

At this state-of-the-art plant, the company utilizes Level-2.5 Automation Technology to produce billets, rebar, medium section products, and rods. GPH Ispat is the first in Bangladesh to introduce 600 grade steel rebars—GPH Quantum B600C-R and B600D-R—to the market. To manufacture these high-grade products, the company has achieved IMS (Integrated Management System) certification by meeting all requirements of ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.

In terms of market size and investment, the steel industry is the second-largest sector in Bangladesh. GPH Ispat alone produces over 800,000 tons of steel annually, while, according to The Daily Star, around 200 steel factories (including 40 large-scale ones) in the country collectively produce approximately 11 million tons per year. This means GPH Ispat accounts for nearly 10% of the country’s total steel production.

Meanwhile, a report published by The Daily Star on May 20, 2024, revealed that although there are over a hundred steel factories in the country, four major factories in Chattogram meet 53% of the total national demand. These companies are:

• Bangladesh Steel Re-Rolling Mills (BSRM)
  
• GPH Ispat
  
• Abul Khair Steel (AKS)
  
• Kabir Steel Re-Rolling Mills (KSRM)
  

Among them, BSRM, established in 1952, contributes about 25%, AKS, founded in 1993, supplies 14%, GPH Ispat, established in 2006, produces 8%, and KSRM, started in 1984, meets around 6% of the national demand. Despite being a later entrant compared to these top players, GPH Ispat has steadily secured a competitive share of the market.

Other large factories in Chattogram include HM Steel, Golden Ispat, SARM, and Bayezid Steel. These manufacturers not only fulfill domestic demand but also export their products internationally.

However, GPH Ispat remains the most technologically advanced among all steel manufacturers in Bangladesh. Its innovations are inspiring other companies in the industry to adopt modern and sustainable technologies. Furthermore, GPH’s environment-friendly plant model is also encouraging greater environmental awareness across the steel manufacturing sector in the country.

GPH Ispat Green Factory

Steel manufacturing in Bangladesh originally began with the use of induction technology, which, although capable of melting metal, could not purify it or ensure consistent quality. To address this gap, GPH Ispat initiated a major expansion project by constructing a new plant in Kumira, Sitakunda—along the Dhaka-Chattogram highway—at a cost of around 2,500 crore BDT.

This plant not only aimed to become the best in the country, but also achieved a remarkable feat by becoming the first in Asia and second in the world to adopt the Quantum Electric Arc Furnace—the most advanced and eco-friendly green steel production technology available today. Environmental protection was given the utmost importance throughout the project.

Following international standards, GPH Ispat uses Quantum Technology to produce high-quality steel. The production process is fully automated, starting from scrap metal, which is transformed into billets and then directly into rods and similar products—all within the factory. GPH Ispat is the first company in Bangladesh to implement Level 2.5 automation in the steel industry and introduce Industry 4.0 state-of-the-art technology, which is free from human error.

The steel produced using GPH’s Quantum Electric Arc Furnace is regarded as some of the finest in the world. The technology has not only revolutionized steel manufacturing but also set a new benchmark for the entire industry.

This furnace uses scrap preheating technology, where the scrap is heated to over 600°C before melting. This significantly reduces electricity consumption and minimizes smoke emission, resulting in lower environmental pollution. The finger-shaft type preheating chamber enhances scrap quality by removing rust, paint, dirt, and galvanized coatings. As a result, the molten steel becomes remarkably pure, ensuring GPH rods contain ultra-pure steel.

The plant also uses a syphonic method for collecting molten steel, where the furnace is tilted at an angle of only 1 to 4 degrees to slowly extract pure steel. Additionally, up to 46% hot heel is retained in the furnace to help separate impurities from the pure steel. Special refractory dams are used to ensure impurity-free steel, offering consumers a superior-quality product.

In production, GPH Ispat precisely uses oxygen, carbon, lime, dolomite, nitrogen, and argon gases. Carbon creates foamy slag, which pulls impurities to the surface, while nitrogen and argon purging remove unwanted substances. This process effectively purifies the steel of elements like phosphorus and sulfur, reducing brittleness and increasing impact resistance.

Ultimately, the use of this advanced technology enhances the rod’s durability and performance, making it a reliable choice for large-scale construction projects, a crucial factor in ensuring strong and resilient infrastructure.

After melting, the next stage is secondary refining, where the steel is further purified and its chemical composition is balanced. In this stage, lime and calcium carbide are added, and argon gas is used to remove impurities. This ensures that the temperature and composition of the molten steel remain within specific, controlled parameters.

The refined steel is then transferred to a high-speed Continuous Casting Machine (CCM), where DynaFlex hydraulic mold oscillation and MEMS (Mold Electromagnetic Stirring) technologies are used. These technologies significantly improve billet quality, which in turn enhances the overall strength and integrity of the steel.

Next, using Winlink Technology, the steel is sent directly to the rolling mill, which reduces electricity and energy consumption. GPH Ispat’s powerful rolling mill uses tungsten carbide rolls, ensuring precise rod diameters and a smooth surface finish. The quenching system further balances the internal structure of the rod, enhancing its durability, which is essential for producing TMT rods.

At every step, GPH strictly follows quality control protocols and employs advanced technologies like Level 2.5 automation and Industry 4.0 computerized systems. All products are manufactured according to international standards such as ISO, ASTM, and BDS, ensuring their strength and stability meet global benchmarks.

Thanks to the combination of skilled engineers and cutting-edge technology, GPH steel has reached a world-class standard. In fact, with the adoption of Quantum Electric Arc Furnace (EAF) technology, GPH Ispat has set a remarkable example in Bangladesh for environment-friendly steel production. Structures built with GPH rods are significantly stronger and more durable than those made with conventional rods.

Among all steel rebar producers in Bangladesh, GPH Ispat is the only company to have its Quantum Technology-based Quality Control Lab accredited by the Bangladesh Accreditation Board (BAB). This recognition means that certificates issued by GPH Ispat are now internationally accepted.

In addition, for its contribution to sustainable development, GPH Ispat has received the SDG Brand Champion Award two years in a row. It has also been recognized by the National Board of Revenue (NBR) as an Authorized Economic Operator (AEO).

GPH Ispat is Opening a New Chapter in Bangladesh’s Steel Industry Through Its Green Initiatives

GPH Ispat has introduced a new dimension in Bangladesh’s steel industry with its environmentally conscious approach. Notably, the use of 600 grade steel, such as B600C-R and B600D-R, has significantly reduced dependency on imported steel in the local construction sector. This not only saves valuable foreign currency but also boosts domestic production.

These high-grade rods are much stronger than traditional 420, 500, or 550 MPa steel, which allows for more compact building structures and lower construction costs. Additionally, due to the enhanced strength of this steel, fewer trucks are needed for transportation, reducing both fuel consumption and carbon emissions, making it a truly commendable step toward sustainability.

On construction sites, the use of these rods reduces rebar congestion, allowing for faster installation and reduced labor and material costs. Environmentally, GPH Ispat has also reduced electricity consumption in its production process, contributing further to the reduction of carbon emissions. Not only is the production process greener, but even at the construction stage, the use of this green steel puts less strain on the environment.

Through these initiatives, GPH Ispat is establishing a sustainable industrial model that plays a vital role in creating a safer and greener environment for future generations.

From the beginning of its new plant’s construction, GPH Ispat prioritized environmental protection. The company discovered that the groundwater levels around the plant were low, and in the absence of government support, relying on groundwater could create scarcity for the local community. As a solution, GPH Ispat constructed a massive artificial lake adjacent to its new plant to harvest rainwater, collecting runoff from nearby hills. This stored rainwater is used in the rod manufacturing process.

The company also implemented a Zero-Discharge Water Treatment Plant, enabling 100% reuse of water within the facility. Additionally, its dusting system meets the standards set by the World Bank.

Thanks to these innovations, GPH Ispat saves around 226,800 megawatts of electricity and 26.46 million cubic meters of natural gas annually, which is enough to meet the yearly energy needs of approximately 35,000 households.

This new plant has been a timely and strategic initiative to elevate Bangladesh’s steel industry to the international stage. However, this responsibility should not fall on one company alone. The government and all steel manufacturers should be encouraged to adopt modern and eco-friendly technologies. Supporting homegrown green initiatives is crucial for building a greener Bangladesh and creating an investment-friendly environment.

The Bangladesh government already has guidelines in place for all steel companies to adopt green technologies. If industrial development continues with a focus on technology, innovation, and responsibility, it can benefit both the economy and the environment.

GPH Ispat is also actively contributing to the advancement of engineering education in Bangladesh. The company collaborates with prestigious institutions like BUET and MIST, engaging in joint research and academic programs. These collaborations include research support, fellowships, internships, lab access, and joint efforts to improve product quality, thus building a strong bridge between industry and academia.