PRESS
RELEASE

Rancon Lubricants Limited today signed a land lease agreement with Invest Bangladesh for 6.5 acres of developed land at the National Special Economic Zone in Mirsarai, Chattogram. 

The company proposes to invest USD 19.65 million in an industrial unit expected to create more than 250 jobs.

Nahian Rahman Rochi, Member (Investment Development), signed on behalf of Invest Bangladesh, while Imran Zaman Khan, Managing Director, signed for Rancon Lubricants Limited.

“This is Invest Bangladesh’s first land lease agreement following the merger of three investment promotion agencies,” said Nahian Rahman Rochi. “Commitments from anchor investors such as Rancon Lubricants signal confidence in the new institution and help build confidence among other investors,” he added. 

Rancon Lubricants previously imported finished engine oils from brands such as Shell for sale in Bangladesh. The new facility will enable the company to import raw materials and blend lubricants locally for the domestic market.

The lease runs for 50 years from the date of possession, with provision for renewal on terms set by Invest Bangladesh. Land handover is due within 90 days of signing. Rancon Lubricants is expected to begin construction within 120 days of handover and bring the unit into operation within 36 months of handover.

Invest Bangladesh will facilitate utility connections and access to applicable government-declared customs duty, VAT and tax incentives. Rancon Lubricants will obtain the necessary approvals and comply with environmental, labour and safety requirements, including the provision of effluent and sewage treatment facilities and connection to the zone’s common effluent treatment and waste management systems.

The agreement provides for performance and compliance monitoring, a period to remedy breaches before termination, and arbitration under the Arbitration Act, 2001.