MANILA, Philippines - Norway-based Hexagon Ragasco AS, one of the world’s leading manufacturers of LPG composite pressure cylinders, is considering the Philippines as a potential site of a new manufacturing plant, an industry official said.
Eastern Petroleum Corp. (EPC) president Fernando Martinez said Ragasco is looking at constructing the plant by 2016 expecting demand to continue growing.
EPC and Ragasco have entered into an agreement for the supply of the composite LPG cylinder while Liquigaz will supply the LPG content.
Martinez noted that Ragasco may consider putting up a plant in the Philippines if the local market as well as ASEAN demand would reach 500,000 composite cylinders annually.
“We’re ready to achieve that level in two years, hence we look at local production in year three or 2016 to reduce the price of composite cylinders by 15 percent representing tariff,†Martinez said.
According to Martinez, EPC has set aside about P3 billion for the rollout of the country’s first composite LPG cylinder by September.
Martinez said they hope to make the first-of-its-kind EC Gas product available in 11-kilogram tanks.
EC Gas, available in Eastern’s gas stations, would be made from composite materials (mostly fiberglass) and is 10 kg lighter than the 26 kg average weight of the steel LPG.
The cylinder is also transparent, which allows consumers to see the actual level of LPG thereby avoiding underfilling.