A Bangladeshi company will set up the plant but the Italian firm will import the entire volume of produced items and market those worldwide.

An agreement to this effect was signed between FENCO SpA and Green Bangla Agro Food and Juice Industries Ltd of Bangladesh on Wednesday evening at a local hotel.

Green Bangla Managing Director Tapash Biswas and FENCO Area Manager Italo Puzzi signed the deal on behalf of their respective companies.

The 'supply, purchase and hundred per cent buyback' agreement has been made initially for five years but the buyback deal may be extended later, company officials said.

Talking to The Daily Star, Green Bangla Chairman Monjurul Alam said FENCO will supply all the necessary machinery for establishing a fully automated plant.

"The company will also install the machinery and provide training to the employees for operating the plant," said Alam.

Green Bangla will produce concentrate from pineapple and mango and smooth sauce from tomato.

"FENCO will purchase these items and take initiatives for marketing around the world," Alam said.

the Green Bangla chairman said apart from generating employment for nearly 350 people the plant will benefit thousands of farmers of different districts.

"We will collect pineapple and mango directly from farmers ensuring fair prices of their produce," said Alam.

Green Bangla will collect pineapple from Madhupur in Tangail and mango from Chapainawabganj and Rajshahi districts. Tomato will be procured from Bogra, Jessore and Kushtia regions.

Industries Minister Motiur Rahman Nizami, State Minister for Water Resources Goutam Chakraborty, Privatisation Commission Chairman Enam Ahmed Choudhury, Foreign Investors' Chamber of Commerce and Industry (FICCI) President Waliur Rahman Bhuiyan, Deshdosh Group Chairman Harun Ur Rashid and Consultant Hendrik Coenraad were present at the function.

FICCI President Wali Bhuiyan said there is a great potentiality in agro-based industry in Bangladesh but the success so far achieved in this sector is not satisfactory.