Targeting Bangladesh Car Market... STX Signs CKD Business Contract with Local State-Owned Enterprise

Partial Assembly Package Supply Agreement

Trading company STX will supply automotive semi-knockdown (CKD) packages to Bangladesh. The strategy is to expand its mobility business by entering the rapidly growing Bangladeshi automotive market.

On the 25th, STX announced that it signed a 'business agreement for the supply of automotive CKD packages' with Pragati Industries (hereinafter Pragati), a state-owned automobile manufacturer in Bangladesh. CKD is a production method where parts, rather than fully assembled vehicles, are exported and then assembled locally for sale.

Pragati is an automobile assembly and parts manufacturing company owned by Bangladesh Steel and Engineering Corporation (BSEC), a state-owned steel complex in Bangladesh. Vehicles manufactured by Pragati are primarily supplied for official use in Bangladesh.

With this agreement, STX plans to supply passenger car CKD packages on a long-term basis and expand the vehicle types to special-purpose vehicles within the year, aiming to increase its market share in the Bangladeshi automotive market. The automotive market, with a population of 170 million, has grown significantly from 8 billion KRW in 2009 to about 500 billion KRW in 2019 over ten years.

Park Sang-jun, CEO of STX, said, "This collaboration will be an opportunity to expand the automotive industry in Bangladesh."

Park Sang-jun, CEO of STX (left), and Abur Kalam Azad Pragoti, CEO, are posing for a commemorative photo after signing a "Business Agreement for the Supply of Automobile CKD Packages" at the STX headquarters in Jung-gu, Seoul on the 18th. (Photo by STX)