Lub-rref (Bangladesh) Ltd says will set up state-of–the-art base oil refinery in Bangladesh to help the country become self-reliant in lubricants production.
Lub-rref says it also wants to export after meeting the domestic demands as global demands are rising driven by the growth of the automotive production.
The company’s founder Managing Director Mohammed Yousuf shared his vision during a meeting with journalists at the factory premises in Chittagong on September 26.
Currently, the local demand for lubricant is 1.2 lakh MT, of which 1.04 lakh tonnes are imported. Bangladesh produces only 0.16 MT.
“Around 85 percent of total demand is supplied through imports and foreign brands dominate the domestic market. Lub-rref wants to break the domination of foreign brands and make Bangladesh self-reliant,” said Yousuf.
There is an ample opportunity to replace the foreign brand by a national brand “BNO Lubricants” for the greater interest of local industries, he said.
As a result, in the last few years, Lub-rref has put utmost efforts to introduce advanced technology and acquiring technical know-how, skill development and setting up in R&D Laboratory, he said.
On top of that, for reducing foreign dependency on import of base fluid for lubricants, Lub-rref is going to set up State-Of-The-Art Base Oil Refinery, the first of its kind in Bangladesh. It will increase production capacity to meet local demand from domestic sources, said Yousuf.
This will cost Tk 400 crore, of which about Tk 100 crore will be spent from funds to be collected through Initial Public Offering (IPO). To get required funds, the company will collect Tk 150 crore from the stock markets and already got approval from the Bangladesh Securities and Exchange Commission (BSEC) to discover the cut-off price.
As per estimation, it will further provide employment opportunities to many and make workers proficient in handling world class technology, said Yousuf. On the other hand, this project will be 70,000 MT per annum capacity. Overall, it will reduce dependency on imports and might as well help to export in future, he adds.
Gradually, it also will set up Tank Terminal along with a berth operating jetty, Bitumen plant, Hydrogen Plant and Power Plant. For its relentless efforts in ensuring quality and maintaining international standards, Lub-rref has received certification and approval from global giants in machinery and car manufacturers.
Considering local & International Market, under the “BNO Lubricants” brand Lub-rref (Bangladesh) Ltd. has also got approval on Original Equipment Manufacturers (OEM’S) approval from the world most prestigious equipment manufacturers like BMW, VOLVO, SCANIA & WARTSILA etc.
Since the company has global and domestic certification and international standard quality, it eyes export after meeting the local demands. “We’re the first company who put all of our efforts to open export permission and put our efforts to open the Lube Oil industry for the private sector,” said Yousuf.
“Our efforts in these regards enable to set up a world-class lubricants industry and export to Nepal, Myanmar and Eastern provinces of India for the first time ever in Bangladesh’s history,” he added.
The growing automotive sector and industrial production have led to an enhanced demand for lubricants. The motor vehicles, power and the marine sector in these regions have a high share in the lubricants market. Asia’s emerging markets including Bangladesh, Vietnam, Indonesia, India and the China is the largest for lubricants comprising more than 56 percent of the total Asia-Pacific market.
Lub-rref has established a reputation for unmatched technical support and liaison with the end customers ensuring correct choice and applications of lubricants. The company also cares highly about the environment where they work and their lubricants industry are environment-friendly and generate no waste.
“With four decade’s sound knowledge and expertise in the field of lubricants and greases Lub-rref is now reaching for greater achievements to add to its already remarkable success story with the vision to become a pioneer in creating a greener alternative in the lubricants industry,” said Yousuf.
The company has adopted modern green technologies for growth and sustainability, he added.
BNO Lubricants, a brand name of Lub-rref has introduced Nynas Technology based transformer oil and NanoTechnology lubricants to minimize carbon emission and ensure longevity of engines. Nano Technology for lubricants help attain fuel efficiency, more power, extend the life of engines and reduce emissions, and add mileage to end users.
Source: United News of Bangladesh