Eastern Lubricants Blenders PLC has entered the transformer oil market, signing a one-year provisional agreement to distribute ERGON-branded transformer oil to Bangladesh’s government sector as the state-owned lubricant maker seeks to diversify beyond its core business.
The company disclosed the agreement in a filing to the Dhaka Stock Exchange on Sunday.
The agreement, signed on 9 July with Premier Petroleum Products & Lubricants, the authorised distributor of US-based ERGON transformer oil in Bangladesh, will see the two companies jointly market and distribute the product to government-sector clients across the country.
Eastern Lubricants said the partnership is part of its strategy to diversify operations by expanding its product portfolio beyond conventional lubricants.
The agreement will initially remain valid for one year.
Investors responded positively to the announcement. Shares of Eastern Lubricants, with a face value of Tk10 each, rose 4.25 per cent to close at Tk1,969.30 on the Dhaka Stock Exchange on Sunday.
