The Bangladesh Army will establish a modern weapons production factory at a closed factory site in Chattogram, and export arms from there after meeting local demand, it said on Thursday.

The factory will be set up at the closed Jalil Textile Mills at Fouzdarhat in Sitakunda upazila of Chattogram district for producing military equipment and arms, said Chief of Army Staff General Waker-Uz-Zaman.

The government formally handed over 54.99 acres of land under the Bangladesh Textiles Mills Corporation to the Bangladesh Army at a symbolic price on Thursday afternoon for the Bangladesh Ordnance Factory (BOF) following an agreement, he said.

The contract was signed between the government and the Bangladesh Ordnance Factories (BOF) of the Bangladesh Army on mill premises as part of the land transfer process.

The factory will help meet the country's demand for arms and could generate substantial foreign exchange by exporting weapons produced there, the Army chief added.

He thanked Prime Minister Tarique Rahman and all concerned for facilitating the land transfer.

“This is not only about meeting the country's needs; the facility will also be developed as an export-oriented industry,” General Waker said, adding that there is demand for Bangladeshi arms in many countries.

If bureaucratic complexities can be removed, Bangladesh could earn significant foreign currency through arms exports, he said.

Explaining the choice of the hilly site at Fouzdarhat, the Army chief said its proximity to Chattogram Port will facilitate the production of modern and sophisticated military equipment and help enhance the country's defence capabilities.

He described the project as part of efforts to strengthen the country's strategic security, saying a long-closed industrial facility will now begin a new chapter in a different form.

Textiles and Jute Minister Khandakar Abdul Muktadir attended the programme as the chief guest.

He said the global defence industry and technology have undergone revolutionary changes, with drones and other military equipment now available at comparatively lower costs in high demand.

The government will provide all necessary support for arms and defence exports, the minister said, adding that the initiative will take Bangladesh to a new level.

Prime Minister’s Defence Adviser Brig Gen (retd) AKM Shamsul Islam and Quartermaster General of the Army Lieutenant General Mohammad Shaheenul Haque were also present.

After the signing ceremony, the minister and the Army chief inspected the abandoned factory premises and later planted trees there.

Jalil Textile Mills began operations in 1961 on around 55 acres of land as a prominent manufacturer of yarn and fabrics. The mill played an important role in the country's textile industry for decades but eventually suffered successive losses and mounting difficulties.

Its production operations were finally shut down in 2004. The premises remained abandoned for years before the necessary procedures and formalities were completed to transfer the land to the Army.

The transfer marks the beginning of a new chapter at a site long associated with the history and heritage of Bangladesh's textile industry.