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Hexagon Ragasco to provide LPG cylinders in Bangladesh

12 Nov '16

2 min read

Hexagon Composites' subsidiary, Hexagon Ragasco, a leading developer of composite LPG cylinders with more than 11 million units in commercial use, has entered into a four-year frame agreement with Beximco Group, Bangladesh's largest and most diversified industrial conglomerates, for sales of composite LPG cylinders into the fast growing Bangladeshi market.

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. 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 2016. The total value of the initial order is approximately $2.1 million (approximately NOK 17 million).

Skjalg S. Stavheim, managing director of Hexagon Ragasco said, “We expect that this agreement is the start of a long-term collaboration with Beximco Group. 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.”

Ajmal Kabir, group director and CEO, Petroleum & LNG at Beximco Group said, “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. With our leading position, we aim to enter the LPG business in Bangladesh on a large scale.” (GK)

Fibre2Fashion News Desk – India