Rancon Lubricants plans to invest $20 million in a new lubricant plant in Bangladesh, with construction due to start by May 2027. The plant will initially have capacity to produce 25 million litres a year.
Bangladesh’s lubricant blenders rely on imported base oils and additives, leaving them exposed to shipping disruptions and international price fluctuations. The Bangladesh Lube Blenders Association estimates annual lubricant demand at 160,000 to 170,000 metric tons, with domestic blenders supplying more than half the market.
On Oct. 5, Rancon signed a 50-year lease for 6.5 acres at the National Special Economic Zone in Mirsarai, Chattogram. Invest Bangladesh, the government agency managing the zone, said the project is expected to create more than 250 jobs.
The land is due to be handed over within 90 days of signing, followed by construction within 120 days. Operations are expected to begin within 36 months of handover, potentially in early 2030. The plant will produce automotive and industrial lubricants, gear oils, heat transfer fluids, compressor and transformer oils, and grease.