Efforts to restart Bangladesh Welding Electrodes Limited (BD Welding), which has been out of production for the last nine years, have gained a lot of momentum.

The company’s share price has increased by about 96% in the last month due to news of efforts to restart the production by recruiting new investors. BD Welding’s share price on the DSE increased from BDT 6.90 to BDT 13.50 between November 16 and December 17.

According to DSE data, in a clarification issued on November 27, BD Welding confirmed that it is in discussions regarding new investment to resume production. The board of directors is optimistic that securing a strong investor would make it possible to reopen the factory, recruit workers, and restore financial stability.

The company, which was listed on the stock market in 1999, has been completely non-operational since 2016. Repeated flooding and natural disasters at its Chattogram factory severely damaged machinery and raw materials, pushing the company into heavy losses.

BD Welding’s crisis was further compounded by legal complications over insurance claims and liabilities from bank loans. After selling the land of its Chattogram factory to settle bank debts, the company purchased new land in Dhamrai, Dhaka. However, due to a lack of funds, it was unable to construct factory sheds or install machinery. As a result, for a long period, all employees except two office staff were placed on unpaid leave.

Finally, in 2021, the stock market regulator BSEC intervened to appoint independent directors and safeguard the company’s assets. Subsequently, following the reconstitution of the board and the lifting of various restrictions, the process of asset transfer was completed. These “turnaround” efforts by the current board have renewed investor optimism, with expectations that the inclusion of a new investor will help BD Welding regain its former strength and return to regular business operations after settling all outstanding dues, including listing fees.