Hexagon Ragasco enters Bangladesh market

Hexagon Composites' subsidiary Hexagon Ragasco has entered into a four-year frame agreement with Beximco Group to sell composite LPG cylinders in Bangladesh. 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 Q4 2016. The total value of the initial order is approximately USD 2.1 million (approximately NOK 17 million). ‘We expect that this agreement is the start of a long-term collaboration with Beximco Group,’ said Skjalg S Stavheim, MD 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.’ ‘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,’ added Ajmal Kabir, Group Director & CEO, Petroleum & LNG at Beximco Group. 

This story is reprinted from material from Hexagon Ragascowith editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.