The factory is in the Khalishpur Industrial Area, along the east bank of the Bhairab River and beside Khulna Newsprint Mills Limited.
The company started production in 1966 using Sundari wood from Sundarbans mangrove forest.
Bangladesh Chemical Industries Corporation, the holding company of Khulna Hard Board Mills limited, shifted to using different raw material.
[2] In 2008, the factory started using non-wood raw material, like sugar sacks and saw dust, to make boards and reduce production costs.
[2] The Managing Director and other officials were confined in the mill by workers protesting the closure on 22 August 2011.