Chinese investor KPST will invest US$7.01 million to set up its second manufacturing facility at the BEPZA Economic Zone-1 in Mirsharai, Chattogram, creating employment for 200 Bangladeshis.

The company signed a land lease agreement with the Bangladesh Export Processing Zones Authority (BEPZA) at the BEPZA Complex in Dhaka on Wednesday to establish the new factory, KPST New Material (BD) Co., Ltd.

Md Tanvir Hossain, Member (Investment Promotion) of BEPZA, and Zhang Youguo, Director of KPST New Material (BD) Co., Ltd., signed the agreement on behalf of their respective organisations.

BEPZA Executive Chairman Major General Mohammad Moazzem Hossain and senior officials witnessed the signing ceremony.

The company will establish the factory on 7,200 square metres of land in the economic zone. It will manufacture footwear accessories, bag and luggage components, paper products, printed materials and other related items.

The facility will have an annual production capacity of 11 million pairs of footwear accessories, 24,000 cubic metres of foam, 200,000 cutting boards and 250,000 cutting dies and moulds, alongside other products.

The company will supply its products to footwear manufacturers in India and Cambodia, as well as export-oriented footwear factories in Bangladesh.

KPST Shoes (BD) Company Ltd, an affiliated company under the same ownership, was the first enterprise to begin export operations from BEPZA EZ-1. Its factory has been in production since November 2023.

Welcoming the new investment, BEPZA Executive Chairman expressed appreciation to KPST for its continued confidence in the authority and its decision to expand manufacturing operations in Bangladesh.

Zhang Youguo said the company had decided to set up the second factory in response to growing demand and increased orders for products manufactured at its first facility.

He said KPST had chosen BEPZA for the expansion after considering the overall investment environment. He expressed hope that the new project would create further business opportunities and thanked BEPZA for its continued support and cooperation.

Located in Mirsharai, Chattogram, BEPZA Economic Zone has been divided into two separate zones, BEPZA EZ-1 and BEPZA EZ-2, to improve administrative and operational management.

As of September 2026, 14 enterprises were operating in BEPZA EZ-1, while another 33 were at the implementation stage.

The zone has recorded cumulative exports of US$68.29 million and total investment of US$98.83 million, generating employment for 4,428 Bangladeshi nationals.