Bangladesh Steel Mill Owners Association demanded of the government to simplify raw materials import process and ensure smooth gas and power supply to their factories.

"We have stopped production in our mills as the government is not fulfilling our demands," said Sheikh Masadul Alam Masud, general secretary of Bangladesh Steel Mill Owners Association.

Re-rolling mill owners will also cease production in their factories from Saturday for an indefinite period if the government does not take steps to fulfill their demands.

In a press statement yesterday, Bangladesh Re-rolling Mills Association demanded of the government to withdraw VAT on retail sale of MS rod, revise the tariff structure and ensure smooth power and gas supply to factories.

The association leaders also said the existing problems are making re-rolling and steel mills non-competitive and leading many of them to closure.

"The government should take proper initiatives to resolve the problems," Shafiuddin Ahmed, general secretary of Bangladesh Re-rolling Mills Association, said.

"If local re-rolling and steel industry collapses it will not only affect the country's booming construction sector but also create unemployment for more than 100,000 people," said Bashir Ullah, a leader of the re-rolling mills association.