Rancon Lubricants Limited plans to invest $19.65 million in a new lubricants blending plant in Mirsarai, Chattogram. The project will create more than 250 jobs.

The company has secured 6.5 acres of developed land at the National Special Economic Zone for the project. Rancon Lubricants is a sister concern of Rancon Group.

The company plans to produce 25 million litres of lubricants annually during the initial phase. Its product range will include automotive and industrial lubricants, gear oil, compressor oil and grease. The plant will also produce heat transfer oil and transformer oil.

Rancon Lubricants will equip the facility with modern machinery and laboratory facilities that meet international standards. The plant will receive base oil by road and directly from vessels through pipelines.

Rancon Group has marketed Shell lubricants in Bangladesh for more than two decades. It has also recently added Motul to its portfolio.

Currently, Rancon Lubricants imports finished engine oil for the domestic market. The new plant will allow the company to import raw materials and blend lubricants locally.

Through local production, Rancon aims to meet rising domestic demand and improve supply stability. The investment will also increase local value addition and support the national economy.

The lease will run for 50 years from the date Rancon takes possession of the land. The agreement also includes an option for renewal.

The land is expected to be handed over within 90 days. Rancon plans to begin construction within 120 days of receiving the land. The company aims to start operations within 36 months.

Source: The Business Standard