Lub-rref also wants to export the oil after meeting domestic demands, as global demands, driven by the growth of global automotive production, have been rising
In a bid to make Bangladesh self-reliant in lubricants production, Lub-rref (Bangladesh) Ltd., a local producer of lube oil, will set up a state-of–the-art base oil refinery with an investment of Tk400 crore to increase production capacity in order to meet domestic demand.
Lub-rref also wants to export the oil after meeting domestic demands, as global demands, driven by the growth of global automotive production, have been rising.
Lub-rref’s founder Managing Director Mohammed Yousuf spelt out his vision of making Bangladesh self-reliant in lubricant production and exporting lube oil during an interaction with the media at the factory premises in Chittagong on Saturday.
Currently, Bangladesh consumes 120,000 tons of lubricants, of which 104,000 tons are imported.
This means Bangladesh produces only 16,000 tons, leaving ample space for growth.
“Around 85% of the total demand is supplied through imports, which means foreign brands dominate the domestic market. Lub-rref wants to break this dominance and make Bangladesh self-reliant,” said Mohammed Yousuf.
"There is enough opportunity to replace foreign brands with a national brand, especially our BNO Lubricants, in the greater interest of the local industries," he added.
In the last few years, in pursuance of its goals, Lub-rref has put in utmost efforts for introducing advanced technology and acquiring technical know-how, skill development and setting up an R&D laboratory, said the company founder.
The outcome of all these initiatives was the establishment of a state-of-the-art base oil refinery, which would be the first of its kind and would break the monopoly of foreign brands in base fluid of lubricants, he beamed.
This will cost Tk400 crore, of which about Tk100 crore will be spent from funds to be generated through initial public offering (IPO).
In order to meet the need for the required funds, the company will collect an additional Tk150 crore from the stock markets.
On the other hand, this project will boast a production capacity of 70,000 tons per annum, so it will reduce dependency on imports and the surplus could possibly be exported as well, he added.
For the future, Lub-rref has its sights on setting up a tank terminal, along with a berth-operating jetty, bitumen plant, hydrogen plant and power plant.
For its relentless efforts, Lub-rref has received certification and approval from global giants in machinery and car manufacturers. Mention can be made here of "Original Equipment Manufacturers (OEMS)" from the world’s most prestigious equipment manufacturers, like BMW, Volvo and Scania.
"We are the first company who put in all of our efforts to have export permission obtained. We want to be the pioneers in setting up a lube oil industry in the private sector and export our lubricant products," said Yousuf.
"Our efforts in this regard enable us to set up a world-class lubricants industry and export to Nepal, Myanmar and Eastern provinces of India for the very first time in the country's history," he added.
The company also cared highly about the environment where it worked and its lubricants industry were environment-friendly and generated no waste, he stated.
“With sound knowledge and expertise acquired over four decades in the field of lubricants and greases, Lub-rref is now reaching for greater achievements to add to its already remarkable success story. The vision is to become a pioneer in creating a greener alternative in the lubricants industry," said Yousuf.
The company had adopted modern green technologies for growth and sustainability, he added.