The government plans to establish economic zones on the land of three closed state-owned mills, aiming to revitalize idle industrial assets and attract investment. The initiative targets the Latif Bawany Jute Mills Limited and Karim Jute Mills Limited in Demra, Dhaka, as well as the Kushtia Sugar Mills Limited. Officials from the Bangladesh Economic Zones Authority (Beza) say the decision was made at a board meeting in August and involves transferring ownership of the sites to facilitate development.
The Latif Bawany and Karim jute mills in Demra have been closed since 2000 due to persistent losses. The factories were established in 1953 and 1954, respectively, before being brought under the Bangladesh Jute Mills Corporation in 1972. While Karim Jute Mills has around 50 acres of land, Latif Bawany Jute Mills has about 83 acres. Together, the two sites offer approximately 133 acres for new economic activities, though the land transfers are currently pending the settlement of outstanding liabilities.
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Beza officials note that the proposed zones will require significant infrastructure investment. Internal roads, gas, electricity and water supply are necessary to create an environment attractive to investors. The authority is looking to the success of the Adamjee Export Processing Zone as a model for these developments.
Kushtia Sugar Mills offers another 220 acres for investment
Separate plans involve the Kushtia Sugar Mills, which offers 220 acres of land for a new economic zone. Established in the 1965-66 fiscal year, the sugar mill initially operated profitably but began incurring persistent losses after the 1990s. Production was eventually suspended in 2020 due to continued financial difficulties. The machinery, worth hundreds of crores of taka, has remained unused and is gradually deteriorating, making the repurposing of the site an urgent priority for the government.
Saleh Ahmed, executive member (Investment Promotion) of Beza, told TBS that the agency is now working on the transfer process. He said they want to follow the same approach used for the Adamjee Jute Mills, where the government settled the mill’s liabilities before handing over the land to Beza. Officials indicate the new zones may eventually come under the planned Invest Bangladesh Authority. Parliament recently passed the “Invest Bangladesh Bill, 2026,” which abolishes Beza and the Bangladesh Investment Development Authority to create a single investment development agency.
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The Adamjee site demonstrates how unused industrial assets can be transformed into productive economic centres. After independence, the jute mill was nationalised and later came under the management of the Bangladesh Jute Mills Corporation. However, prolonged losses, weak management, technological limitations and labour unrest pushed the mill into crisis. The government eventually shut down the mill on 30 June 2002. On 1 December 2004, the government decided to hand over the mill’s land to the Bangladesh Export Processing Zones Authority. The Adamjee EPZ was formally inaugurated in 2006 by then Prime Minister Khaleda Zia.
According to data, the 292.62-acre Adamjee EPZ now has 276 industrial plots, with 47 enterprises in operation. Since its establishment, the EPZ has attracted $847.03 million in investment and exported goods worth $11.14 billion. The zone currently employs 76,027 people and produces a wide range of export products, including garments, textiles, electronics, electrical goods, footwear, safety jackets, suits and blazers, as well as Japanese automobile seat covers. The government hopes the proposed economic zones will turn the long-idle industrial land into new centres of production and investment.