Cylinder manufacturing
MAKEEN Energy has signed a contract with City LPG for our first cylinder manufacturing plant in Bangladesh
First cylinder manufacturing in Dhaka
With the incredible growth in the Bangladeshi market for liquefied petroleum gas (LPG), MAKEEN Energy has signed a contract with City LPG for our first cylinder manufacturing plant in the country.
City LPG is a subsidiary of City Group – one of Bangladesh’s leading manufacturers of consumer goods, known for anything from foodstuffs and ship building to tea and much more. But their involvement in LPG is relatively new, coming in the wake of the steep growth in the country’s LPG market over the past few years. In fact, Bangladesh is today the world’s fastest growing market for LPG.
Looking for the right partner
To get started, City LPG wanted a place to produce their own cylinders, and they looked for a partner who fulfilled 3 criteria:
- Able to ensure the highest quality standards in all aspects
- Able to act as a total solution partner, not just a product supplier
- Able to provide good, local support
They found all this and more in MAKEEN Energy, and we therefore reached an agreement to build them their first LPG cylinder production plant – which is also the first for us in Bangladesh. It will be part of an LPG terminal and filling plant, also supplied by MAKEEN Energy. With our decades of experience in the LPG business and local office in Dhaka, we could offer City LPG a reliable and stable process as well as a top-quality solution.
3 reasons to make your own LPG cylinders
But why even bother producing your own cylinders? Would it not be easier to import them? Well, even though the initial investment is high, there are actually several arguments in favour of the “make your own” solution.
- Importing ready-made cylinders is expensive. Due to the huge demand, LPG cylinders have become a scarce resource in Bangladesh, and importing them comes with hefty taxes. On top of that, cylinders take up a lot more space in a cargo container than raw materials like steel – and cargo space is especially precious nowadays.
- You can secure the quality of your own product. By having full control from sourcing of materials to final production, you can be sure that the product you end up with is the best it can be.
- It pays in the long term. Eventually, due to the lower price you pay per cylinder, the initial investment in production equipment will pay for itself and start churning out profits.
According to plan, the new plant will be up and running in early 2023. We look forward to following the process and helping City LPG get a fantastic entry point into the world of LPG.
