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Bangladesh Welding Electrodes Limited (BD Welding) is actively searching for a strategic investor to fund a full operational turnaround.
Key Details of the Crisis & Revamp Plan
- Root of the Crisis: Production has remained halted since 2016 following severe flash-flood damage to its Chattogram factory, unpaid insurance claims, a pending Tk 2 crore lawsuit, and mounting bank loan defaults.
- Relocation Hurdles: The company shifted its registered/planned presence to Dhamrai, Dhaka, but lacks the necessary operational infrastructure. [1]
- Proposed Investment Use: The fresh capital sought from strategic investors is earmarked for:
- Constructing new factory infrastructure in Dhamrai
- Installing required plant and machinery
- Recruiting and rehiring workers (many of whom have been on unpaid leave)
- Clearing financial arrears in installments and addressing long-standing regulatory issues (such as unpaid Dhaka Stock Exchange [DSE] listing fees dating back to 2013) [1, 2]
- Governance: Following regulatory intervention, the Bangladesh Securities and Exchange Commission (BSEC) appointed independent directors in 2021 to reconstitute the board and guide restructuring efforts
https://www.tbsnews.net/economy/stocks/once-pioneer-now-crisis-bd-welding-seeks-investor-revive-operations-1596821#:~:text=The%20proposed%20investment%20would%20fund,of%20workers%20to%20restart%20manufacturing.
