Chinese investor KPST will invest $7.01 million in a second manufacturing facility at BEPZA Economic Zone-1 in Mirsharai, Chattogram, expanding its Bangladesh operations after rising orders at its first factory.
KPST New Material (BD) Co will build the plant on 7,200 square metres of land under a lease agreement signed on Wednesday with the Bangladesh Export Processing Zones Authority (BEPZA) in Dhaka.
The factory will produce footwear accessories, bag and luggage components, paper products, printed materials and related items, and is expected to create 200 jobs for Bangladeshi nationals.
According to a BEPZA press release issued on Wednesday, annual capacity will include 11 million pairs of footwear accessories, 24,000 cubic metres of foam, 200,000 cutting boards and 250,000 cutting dies and moulds.
The products will be supplied to footwear manufacturers in India and Cambodia as well as export-oriented footwear factories in Bangladesh.
KPST is expanding after its affiliated company, KPST Shoes (BD) Company, began production at BEPZA EZ-1 in November 2023. That company was the first enterprise to start export operations from the zone.
KPST New Material Director Zhang Youguo said the second factory was being established in response to growing demand and higher orders from the first facility.
The land lease was signed by BEPZA Member for Investment Promotion Md Tanvir Hossain and Zhang on behalf of their respective organisations.
BEPZA EZ-1 had 14 enterprises in operation as of September 2026, with another 33 under implementation.
The zone had recorded cumulative exports of $68.29 million and total investment of $98.83 million, while generating employment for 4,428 Bangladeshi nationals.
BEPZA Economic Zone in Mirsharai was divided into BEPZA Economic Zone-1 and BEPZA Economic Zone-2 to manage administrative and operational activities separately.
