GPH Ispat is set to invest about Tk 1,700 crore to expand its production capacity by using ultra-modern long-steel technology.

In line with the expansion, the Chittagong-based steel manufacturer's yearly production of MS billet will increase by 840,000 tonnes.

Its existing annual capacity stands at 168,000 tonnes.

The yearly production of MS rod and medium section products such as steel beam, angle, channel and flat bar will also be increased by 640,000 tonnes, in addition to the existing annual capacity of 120,000 tonnes.

The expansion will be implemented in two phases, and the cost will be arranged from owners' equity and loans.

The company will also sign an agreement with Primetals Technologies Austria, a joint venture of Siemens and Mitsubishi Heavy Industries & Partners, which will supply machinery for the large-scale expansion of GPH Ispat, according to web postings of the Dhaka Stock Exchange.

GPH Ispat, which was listed on the stock exchanges in 2012, will hold a press briefing in Dhaka today to share the details on the expansion plan with the media.

The company's net profit rose 5 percent year-on-year to Tk 29.28 crore in 2015.

On the premier bourse yesterday, each share of the company traded between Tk 45 and Tk 49, before closing at Tk 45.2.

Sponsors hold 59.65 percent stakes in GPH Ispat, institutions 14.43 percent and general investors the remaining 25.92 percent.