Jotun Bangladesh Limited (JBL), a subsidiary of Norway-based paint and coatings manufacturer Jotun Group, has opened its maiden plant inside the Meghna Industrial Economic Zone (MIEZ) with an investment of $7.6 million.

Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), inaugurated the plant at the MIEZ in Sonargaon area of Narayanganj yesterday.

The new plant has a total area of 8,984 square metres.

"This factory will allow us to better serve our customers and contribute further to the development of Bangladesh by creating new employment opportunities, boosting the country's gross domestic product and bringing in more foreign direct investment," said Percy Jijina, managing director of JBL.

Jotun Group is one of the world's top paint and coatings manufacturers, operating in over 100 countries with 41 production facilities that cater to the four main segments, namely decorative paint, protective coatings, marine coatings, and powder coatings.

JBL has been operating in Bangladesh for the last six years and currently employs more than 90 people. But following the opening of its new factory, the company plans to increase its workforce even further, creating hundreds of additional jobs over the next few years.

"JBL's core vision, 'Jotun Protects Properties', is aligned with Bangladesh's ambitious plans for faster economic growth by investing in mega infrastructure development projects," Jijina said.

"Through our innovation and state-of-the-art products, we work to not only enhance the appearance of assets but also ensure lasting durability, thereby saving billions of dollars in maintenance and repair costs for our project partners worldwide."

"This factory will take us one step closer to achieving our vision," he added.

Tanzib Ashan, deputy marketing manager of JBL, said Bangladesh has a very promising market and that is why more factories are being set up in the country.

FBCCI President Uddin said Norway has been and will always be a partner in Bangladesh's development. The establishment of Jotun's new factory in Bangladesh is one more example as this investment shows their long-term commitment to the local market.

He went on to say that this investment will focus on developing competitive and quality-focused local production of paint and coating items.

The nearly $471 million paint and coatings industry in Bangladesh has registered steady growth for the last decade.

"So, I hope this factory will succeed in increasing the market share of locally produced paint and coating products," Uddin added.

The FBCCI president then said the Asia-Pacific region occupies a substantial share of the global paints market with China, India, Vietnam and Bangladesh witnessing good investment in this sector.

Annual paint consumption in Bangladesh currently stands at about 180,000 tonnes with the industry recording more than 6 per cent year-on-year growth in recent times thanks to rapid urbanisation in the country, he added.

Mostafa Kamal, chairman of Meghna Group of Industries, Silje Fines Wannebo, deputy head of mission of the Royal Norwegian Embassy in Dhaka, and Morten Fon, chief executive officer and president of Jotun Group, were present at the event.

Around 40 local and multinational paint and coating companies are now operating in the local market, which was once dominated imports.

The future of decorative painting in Bangladesh is bright as the market has been increasing rapidly, encouraging many foreign companies to invest in the sector.

Berger is the current market leader with a 55 per cent share of the local market while major local companies include Asian Paints, Roxy Paints, Elite Paint, Pailac Paints, Moonstar Paints, Ujala Paints and Al-Karim Paints & Chemicals.

Meanwhile, global powerhouses AkzoNobel of the Netherlands and Nippon Paint of Japan are now trying to grab a share of the growing local market as well.