Bangladesh Machine Tools Factory (BMTF) Ltd.

Bangladesh Machine Tools Factory (BMTF) Ltd. is one of the largest company enterprises of its kind in Bangladesh. It is located at joydebpur, Gazipur-1700; about 40 km away fromDhaka. It also has a Liaison Office at 278, Alenbari (Near Trust Filling Station), Tejgaon, Dhaka- 1215. The factory has an area of 247.66 acres with a covered area of 60310sq meter. It is a state owned limited company under the management of Bangladesh Army. BMTF is well equipped with variety of high production machineries and equipments for various engineering products.

This unique enterprise was inherited from the historic past, founded on a dream to create an industrial base for the country. BMTF owes its origin as a project to a policy of promoting a structurally diversified pattern of industrial development in what was the then East Pakistan, now Bangladesh. The goal was to move the industrialisation process beyond the processing of primary products and to lay the foundation for an intermediate and capital goods industry.

The first phase covered manufacturing of essential workshop machinery and equipment such as Lathes, Drilling Machine, Power Hacksaw, Universal Wood Working Machine, Shears and Grinders, Cutting Tools, Hand Tools, Agricultural implements, Centrifugal Pumps, Plough and Spades, Spares for Textile and Sugar Mills. All the above equipment was already in use in the economy of East Pakistan, largely through imports.

This factory was conceived in 1963 and the construction work started in 1966. The East Pakistan Machine Tools Factory, subsequently called Bangladesh Machine Tools Factory, was heavily damaged in the Liberation War of 1971. After construction was eventually completed, it was commissioned on 11 February 1979. The BMTF entered into a Management Contract Agreement and Technical Assistance Agreement with Fabrique National Company (FN) of Belgium in December 1984. The performance of the Belgian management contractor was however largely unsatisfactory and left BMTF in a situation which was far worse than it was before the contractors assumed charge. The Management contractor could only achieve 25% of the production target and 22% of the sales target that it had committed in their management contract.

F.N. had hardly any experience in running a Machine Tools Factory. Most of the actual manpower fielded by F.N. had practically no experience in their respective fields. Notwithstanding its accumulating losses the BMTF, at that time of its closure, continued to supply goods and services to the BADC, Power Development Board, Railways, Textile Mills, Jute Mills, Chemical Industries, Diesel Plant, Chittagong Steel Mills, Rural Electrification Board, etc.

It was closed down on 14 July 1994 after 14 years of operation due to staggering losses and other problems. One of the single largest manufacturing enterprises in Bangladesh, with an accumulated investment of Tk. 172.40 crores, employing 1537 people, was closed down on an executive order of the government. The pressures from a politically well-connected class of aid intermediaries were quite effective in persuading public agencies to meet their needs through aided imports rather than through patronisation of local industry.

The Bangladesh Army did not limit its business efforts only by initiating new businesses but also doing acquisition of loss-incurring state industries through the privatisation board. The army came forward to acquire Bangladesh Machine Tools Factory (BMTF) Ltd when the government was planning to privatise lose-incurring state industries, including the factory, under privatisation policy. BMTF was handed over to the Bangladesh Army on 27 July 2000.

Under the management of Bangladesh Army, BMTF is now reshaping itself to respond to the new challenges. In addition to providing infrastructures and huge pieces of land, the government also invested over Tk 500 crore after handing it over to the army. By 2006 BMTF had assembled and made bodies of army vehicles, produced line hardware for Rural Electrification Board and Power Development Board and accessories for government and private industries. BMTF had assembled around 1000 three-tonne army truck over the previous three to four years.

After handling once a losing unit, Bangladesh Machine Tools Factory made a profit of Tk 6.03 crore in the first four years under the management of Bangladesh Army. In 2008-2009, BMTF made a profit of Tk 8.22 crore, which is less than the income from savings interest of the investment made in the industry.

It has basic production facilities like casting, forging, machining, heat and surface treatment etc. It has thirteen large production shops along with administrative building, training school, residential area etc, within the complex. This factory has enormous prospects to open up new avenues with products and services for local and foreign markets. BMTF have the facilities of Pattern Making Wooden and Metallic, Light and Heavy Ferrousand Non-Ferrous Castings, Forging, Machining like-Turning, Milling, Shaping, Grinding,Honing, Broaching, Jig Boring, Gear Making etc. Heat Treatment for Both Forged and Machined Components.

Pacific Motors Ltd (PML), a local car distributor, signed an agreementn in 2004 to import bus, minibus and trucks, and assemble them initially at Bangladesh Machine Tools Factory (BMTF) at Gazipur. PML is the sole distributor of Nissan Diesel, manufacturer of a wide range of vehicles including bus, minibus, truck, covered van, log carrier, construction equipment carrier and chassis for heavy-duty crane. They import vehicles in completely knocked down (CKD) and semi knocked down (SKD) conditions for assembling in the country.

In May 2011 Rajkot-based Atul Auto launched its Atul Gem rear engine six seater passenger vehicle in through Atul Autos Bangladesh Limited. While Atul Auto Limited will provide technical assistance to Atul Autos Bangladesh Limited, the latter tied up with Bangladesh Machine Tools Factory for assembling the passenger vehicle. One of the largest three wheeler manufacturers and leader in front engine diesel and CNG 3-wheeler, Atul Auto will supervise the assembling work of the vehicles at Atul Autos Bangladesh Limited.

In May 2012 the cabinet committee endorsed a proposal of Bangladesh Road Transport Authority (BRTA) to appoint Army-run Bangladesh Machine Tools Factory (BMTF) for introducing retro-reflective number plates with radiofrequency identification system at motor vehicles at a contract value of Tk 5.996 billion.

Though BMTF was supposed to run as a company with the existing set up unaltered, army authorities are running the organisation establishing three other industries on the BMTF land. The three industries are Bangladesh Footwear and Leather Products Ltd, Bangladesh Machine Tools Factory CNG Conversion Ltd and BMTF Training Institute.

Trust Technical Training Institute (TTTI) has started its journey in the field of Technical training on 01 June 2009. This institute is located inside Bangladesh Machine Tools Factory (BMTF), Gazipur. It is approximately 7 KM North East of Gazipur Chowrasta (Central Cross road) and approximately 01 KM North of Dhaka University of Science & Technology (DUET). Gazipur is connected both by road and rail link from Dhaka and other parts of Bangladesh. TTTI is run by Bangladesh Army and financed by Trust Bank Limited (TBL). The institute commenced its operation with 05 different courses mainly Driving, AC and Refrigeration, Machinist, Welding and Plumbing and pipe fitting with a total of 149 students. The institute has been established to impart technical training to both non-technical army personnel who are retiring at an early age and also the unemployed youths of the country.