Khulna Shipyard
A Bangladeshi state-owned shipyard and defense contractor that builds and repairs naval, coast-guard, commercial and service vessels.
Last updated August 26, 2026
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Overview
Khulna Shipyard Limited is a state-owned Bangladeshi shipbuilding and ship-repair enterprise headquartered at Labanchara in Khulna. It operates from a site of approximately 68.97 acres, around 45 kilometres north of the Port of Mongla, and serves as one of Bangladesh’s principal domestic industrial facilities for naval and maritime construction. Its customer base has included the Bangladesh Navy, Bangladesh Coast Guard, ports, oil companies, government organizations and other commercial or institutional operators. The yard was constructed during the period of East Pakistan under the supervision of the East Pakistan Industrial Development Corporation. German firm Stülcken Sohn supplied technical assistance and designed the original yard facilities. Construction began in 1954 and the completed facility was commissioned on 27 November 1957. Its original mandate covered both ship construction and repair, as well as the production of engineering components intended to support other industries. Foreign technical and administrative management continued into the 1960s before responsibility gradually moved to the yard’s own engineering staff. Khulna Shipyard’s work has traditionally focused on small and medium-sized vessels rather than large ocean-going ships. Its capabilities include steel and aluminium construction, vessel repair, fabrication and marine engineering. The yard can build vessels up to approximately 90 metres in length and 700 tons lightweight, while its slipway can handle vessels of up to about 84 metres and 700 tons lightweight. Descriptions of its broader production capability have also included tugs, workboats and vessels of up to 5,000 deadweight tonnes, although the exact practical limit varies by vessel type and project configuration. The enterprise experienced financial difficulties through much of its early history. It recorded a profitable period from 1973 to 1984 but later returned to losses. On 3 October 1999, the Bangladesh Navy assumed responsibility for the yard together with reported debt of 993.7 million taka. The Navy invested 614.6 million taka during the transfer process. By 2008, outstanding debts had reportedly been cleared, and the yard had returned to profitability. Navy oversight also reinforced its strategic role as a domestic defense-industrial asset. Khulna Shipyard is regarded as Bangladesh’s largest military shipbuilding company. It has produced patrol craft, patrol vessels, boats, tankers, tugs and other ships for national maritime agencies. Its naval modernization work has included Padma-class patrol vessels for the Bangladesh Navy and Sobuj Bangla-class vessels for the Bangladesh Coast Guard. In February 2022, the yard supplied six patrol craft designed by South African company Icarus Marine to the Bangladesh Coast Guard. It has also developed institutional capabilities beyond vessel construction, including an internationally certified welding-training facility established in cooperation with Swisscontact and funded by Chevron. As of January 2022, the yard was reported to have built 775 vessels across all categories and completed 2,363 repair projects. Its competitive position rests on local government ownership, domestic defense procurement, established repair infrastructure and the ability to deliver smaller complex vessels without relying entirely on overseas shipyards. The company’s principal strategic challenge is the need to maintain technical modernization, productivity and commercial competitiveness while operating within Bangladesh’s public-sector procurement environment.
History
Khulna Shipyard was created as part of the industrial development of what was then East Pakistan. Construction began in 1954 under the East Pakistan Industrial Development Corporation, with technical assistance from the German company Stülcken Sohn. The assistance included the design of the yard’s facilities. After construction was completed, the yard was formally commissioned on 27 November 1957. Its initial purpose was broad: it was intended to build and repair vessels for defense organizations, ports, oil companies and other customers, while also manufacturing engineering parts for wider industrial use. During its first decade, the yard was managed both administratively and technically by Burness Corlett + Partners and Maienform. By 1967, control had passed to Khulna Shipyard’s own professional engineers. The transition established a more locally managed operating structure, although the yard continued to face financial and commercial difficulties. It was profitable during the period from 1973 through 1984, but later returned to unprofitable operations. These difficulties reflected the challenges of sustaining a specialized public industrial facility in a developing maritime market and securing a steady flow of government and commercial contracts. A major institutional change occurred on 3 October 1999, when the Bangladesh Navy took over responsibility for the shipyard. The transfer included reported debt of 993.7 million taka, while the Navy invested 614.6 million taka in the facility. Navy involvement gave the yard a stronger connection to national defense procurement and helped preserve it as a domestic source of maritime construction and repair. In January 2005, the Navy reportedly raised concerns with Prime Minister Khaleda Zia that government organizations were not awarding sufficient work to Khulna Shipyard. It also sought permission to import raw materials without taxes. During parliamentary discussion, a member of parliament suggested that unofficial payments might be discouraging agencies from selecting the yard, although the available reference does not establish the allegation as a proven finding. By 2008, the shipyard had reportedly cleared its outstanding debt and returned to profitability. Its production scope included tugs, workboats and other vessels, with descriptions of its broader capability extending to ships of up to 5,000 deadweight tonnes. The yard’s most important long-term role, however, has been the construction and repair of smaller naval and maritime-security vessels. It has supplied the Bangladesh Navy and Bangladesh Coast Guard with patrol craft and patrol vessels, while also serving ports, oil companies and other institutional users. Under the first phase of Bangladesh’s Force Goal 2030 naval modernization program, Khulna Shipyard received contracts connected with the Padma-class patrol vessels for the Bangladesh Navy and the second batch of Sobuj Bangla-class vessels for the Bangladesh Coast Guard. The Navy signed a contract for five vessels on 2 May 2010, the Coast Guard awarded a contract for three vessels on 17 July 2016, and the Navy ordered five additional vessels on 20 May 2019. These programs strengthened the yard’s role in Bangladesh’s defense-industrial strategy and provided continuity of work for its production facilities. The yard also expanded its contribution to maritime industrial skills. In cooperation with Swisscontact, and with funding from Chevron, it became the home of Bangladesh’s first internationally certified welding-training facility. This initiative complemented vessel construction by improving access to recognized technical training. In February 2022, the yard delivered six Icarus Marine-designed patrol craft to the Bangladesh Coast Guard. By January 2022, its reported cumulative output had reached 775 vessels, alongside 2,363 completed ship-repair jobs. Khulna Shipyard remains an active state-owned shipbuilder whose principal importance lies in domestic naval procurement, coast-guard capability, vessel repair and the development of Bangladesh’s maritime engineering base.
- 2022
Six patrol craft delivered to the Coast Guard
[1]Khulna Shipyard provides six Icarus Marine-designed patrol craft to the Bangladesh Coast Guard.
- 2019
Additional Navy patrol vessels ordered
[1]The Bangladesh Navy orders five additional vessels on 20 May under the shipyard’s naval modernization work.
- 2016
Coast Guard orders Sobuj Bangla-class vessels
[1]The Bangladesh Coast Guard awards a contract on 17 July for three second-batch Sobuj Bangla-class vessels.
- 2010
Bangladesh Navy orders Padma-class vessels
[1]The Navy signs a contract on 2 May for five patrol vessels associated with the Padma-class program.
- 2008
Debt clearance and return to profit
[1]Reportedly, all outstanding debts are cleared and the shipyard resumes profitable operations.
- 2005
Navy presses for government procurement support
[1]The Navy seeks greater access to government contracts and tax-free imported raw materials for the shipyard.
- 1999
Bangladesh Navy takes over the shipyard
[1]On 3 October, the Bangladesh Navy assumes responsibility for Khulna Shipyard as part of a restructuring involving reported debt and new investment.
- 1984
Reported profitable period ends
[1]The period of reported profitability through 1984 comes to an end, followed by renewed financial difficulties.
- 1973
Profitability period begins
[1]The shipyard enters a reported profitable period that continues through 1984.
- 1967
Management transferred to local engineering staff
[1]After a period of external technical and administrative management, responsibility is vested in the shipyard’s own engineers.
Products and positioning
Bangladesh’s principal state-owned builder and repairer of small and medium-sized naval, coast-guard, commercial and service vessels, with an emphasis on supporting national maritime agencies and domestic defense-industrial capacity.
Naval patrol vessel · 2010
Padma-class patrol vessel
A patrol-vessel program associated with Bangladesh’s Force Goal 2030 naval modernization effort. Khulna Shipyard received an initial Bangladesh Navy contract for five vessels in 2010 and a further order for five vessels in 2019. The class forms part of the yard’s contribution to domestic naval construction and maritime security.
Coast-guard patrol vessel · 2016
Sobuj Bangla-class patrol vessel
A patrol-vessel program built for the Bangladesh Coast Guard. Khulna Shipyard received a contract for three second-batch vessels in 2016. The program supports coastal surveillance and maritime law-enforcement duties while maintaining local construction capacity.
Coast-guard patrol craft · 2022
Icarus Marine-designed patrol craft
Patrol craft designed by South African Icarus Marine and constructed or supplied by Khulna Shipyard for the Bangladesh Coast Guard. Six craft were provided in February 2022, demonstrating the yard’s ability to combine foreign vessel design with domestic production and delivery.
Commercial and service vessel
Tugs and workboats
Khulna Shipyard builds tugs, workboats and related service vessels for ports, industrial users and other maritime operators. These vessels complement its defense work and represent an important part of the yard’s broader commercial and institutional production capability.
Ship repair · 1957
Ship repair services
The yard provides repair and maintenance work for naval, coast-guard, commercial and service vessels. Its slipway can dock and undock vessels up to approximately 84 metres in overall length and 700 tons lightweight, subject to project requirements.
Brand decisions
2019
Additional Padma-class orderProduct launchBackground
The Navy continued its patrol-vessel acquisition program under the national naval modernization framework.
Action taken
The Bangladesh Navy ordered five additional vessels from the program on 20 May.
Aftermath
The order extended Khulna Shipyard’s participation in domestic naval shipbuilding.
2016
Sobuj Bangla-class batch-two contractProduct launchBackground
The Bangladesh Coast Guard sought additional locally built patrol vessels for maritime security duties.
Action taken
The Coast Guard awarded Khulna Shipyard a contract on 17 July for three second-batch Sobuj Bangla-class vessels.
Aftermath
The contract broadened the shipyard’s continuing role as a supplier to Bangladesh’s maritime security agencies.
2010
Initial Padma-class patrol-vessel contractProduct launchBackground
Bangladesh’s Force Goal 2030 modernization program created demand for locally built naval patrol vessels.
Action taken
The Bangladesh Navy signed a contract on 2 May for five Padma-class patrol vessels associated with Khulna Shipyard.
Aftermath
The order expanded the yard’s role in Bangladesh’s naval modernization and provided a major domestic defense production program.
1999
Transfer of shipyard responsibility to the Bangladesh NavyStrategyBackground
Khulna Shipyard had experienced prolonged financial difficulties and carried substantial reported debt.
Action taken
On 3 October, the Bangladesh Navy assumed responsibility for the enterprise and invested in the facility during the handover.
Aftermath
The transfer reinforced the yard’s role as a defense-industrial facility and was followed by debt clearance and a reported return to profitability by 2008.
Recent events
- 2022
Bangladesh Coast Guard receives six Khulna Shipyard patrol craft[1]
Product launch
Khulna Shipyard provided six patrol craft designed by South African Icarus Marine to the Bangladesh Coast Guard.
- 2015
Maldives expresses interest in Khulna Shipyard patrol craft[1]
Other
The Maldives reportedly showed interest in procuring patrol craft from Khulna Shipyard for its coast-guard requirements.
- 2008
Khulna Shipyard clears outstanding debt and returns to profitability[1]
Other
The yard reportedly completed the clearance of its outstanding debts and resumed profitable operations, with production including tugs, workboats and other vessels.
- 2005
Navy seeks stronger government contracting support for Khulna Shipyard[1]
Regulation · Other
The Bangladesh Navy reportedly asked the prime minister to ensure that government organizations placed more contracts with Khulna Shipyard and requested tax-free importation of raw materials. A parliamentarian alleged that unofficial incentives could be influencing procurement decisions.
- 1999
Bangladesh Navy assumes responsibility for Khulna Shipyard[1]
Other
The Bangladesh Navy took over responsibility for the financially troubled shipyard and assumed reported liabilities associated with the transfer.
Sources2 sources
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