Establishment of Expanded Polystyrene (EPS) production as insulation material for the building sector

• Project location: Dhaka, Bangladesh
• Consortium: DMH BV, Advanced Development Technologies Ltd,  
• Project budget: Euro 825,000
• External financing: 60% grant funding by PSOM
• Project period: August 2008 - July 2010
  

Abstract

DMH B.V. is an engineering group involved in the manufacturing of complete interior systems and individual interior components for the public transportation sector. Several trains and buses operating on the European, Asian and American continent are equipped with its interior systems. DMH extensively uses Expanded Polystyrene (EPS) as insulation material in sandwich panels as it offers great technical versatility, performance and cost effectiveness. The material is widely used in many everyday applications where its light weight, strength, durability, thermal insulation and shock absorption characteristics provide economic, high performance products. DMH has been exploring the commercial possibilities for use of EPS as insulation material in the building sector for years. Contacts established in relevant sectors in Bangladesh, it came to discuss this idea with local real estate developer Advanced Development Technologies Ltd (ADTL). This company saw vast potential in using EPS as insulation material in residential apartments and office buildings, as it would drastically reduce energy costs related with cooling the interiors. As these materials locally are not available in Bangladesh, and importing is too costly, the idea was born to set up a production facility for EPS in Dhaka serving the local building sector.

The project partners will jointly establish a local venture which will be used as entity under which the project activities will resort. Hardware investments will include the adaptation of an existing production hall, which will be equipped with a complete production line for manufacturing EPS blocks of various densities (suiting several applications). Staff will be recruited and trained in quality control, operation and maintenance of the production line, and in quality and environmental management (ISO 9001:2000 and ISO 14,000, respectively). DMH will bring in technical and managerial expertise, while project partner ADTL will provide a sales network in the construction sector as well as a guaranteed market for the sales of EPS.

The project will result in:

• the establishment of a Joint Venture between DMH BV and ADTL for the production and marketing of various density EPS materials for the local market;
• the construction of a modern EPS production facility in Dhaka, employing 35 employees;
• training of 35 staff in issues related to Quality Control, O&M, compliance with ISO 9001:2000 (quality management in production and sales) and ISO 14000 (environmental management principles, systems and supporting techniques) standards; acquiring of both the ISO certificates;
• a bankable business plan for securing finance for follow-on investments.

Upon successful conclusion of the project period, the partners will make follow-up investments in further expansion of the existing production facilities, as well as in establishing a production facility for sandwich panels enabling the venture to target a broader market. Additional direct employment during this period is estimated to be 50 staff.