As natural gas is a limited resource in Bangladesh, the government
aims to reserve this energy source for industrial applications and power
generation.
Piped natural gas for households is planned to be
replaced with bottled LPG, and it is therefore anticipated that the
demand for LPG cylinders will be significant in the coming years.
Hexagon Composites` subsidiary Hexagon Ragasco has entered into a four-year frame agreement with
Beximco Group for sales of composite LPG cylinders into the fast growing Bangladeshi market. -
The parties are targeting a volume of 1.4 million cylinders over the four-year period of the frame agreement.
The
first delivery under the frame agreement will be shipped in the fourth
quarter of this year. The total value of the initial order is
approximately USD 2.1 million (approximately NOK 17 million).
Hexagon
Ragasco is the world`s leading manufacturer of composite LPG cylinders
with more than 11 million units in commercial use. The high-volume,
highly automated production facility in Raufoss, Norway is the most
advanced of its kind world-wide.
Hexagon Ragasco`s products are
unique and provide many advantages over traditional steel cylinders in
terms of safety and user-friendliness.
“We expect that this
agreement is the start of a long-term collaboration with Beximco Group,”
says Skjalg S. Stavheim, Managing Director of Hexagon Ragasco. “With a
premium product offering considerable advantages over steel cylinders,
we are confident that the composite LPG cylinders will help to make
domestic use of LPG in Bangladesh safer and more user-friendly.”
The
Beximco Group is one of Bangladesh`s largest and most diversified
industrial conglomerates with an annual turnover in excess of USD one
billion and employing 65,000 people.
“We are very pleased to have
entered into a partnership with Hexagon Ragasco. The lightweight LPG
cylinders provide numerous advantages over traditional steel cylinders
in terms of safety, corrosion-resistance and user-friendliness, and will
give improved handling and experience for the distributors and
consumers,” says Ajmal Kabir, Group Director and CEO, Petroleum &
LNG at Beximco Group. “With our leading position, we aim to enter the
LPG business in Bangladesh on a large scale.”
Source: Reuters