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.
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 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."