Lahore, Pakistan-based Hi-Tech Lubricants announced it has started commercial production earlier this month following approval from the countrys Oil and Gas Regulatory Authority from its expanded 30,000 metric tons per year lube blending plant in Lahore, established at a cost of Rs1.91 billion (US$18 million).
Now, after completion of due formalities, the Plant Hi Tech Blending Private Limited will now start its commercial production today (August 3), said Hi-Tech Lubricants Company Secretary Muhammad Imran, in a notification to the Pakistan Stock Exchange.
The blending plant will manufacture ZIC engine oil previously imported from South Korea's SK Lubricants.
The blending plant is a wholly owned subsidiary of the company, which is registered for commercial production by the Oil and Gas Development Company, said Imran, adding that the initial registration was for a year, beginning from July 21, 2016 and renewable on a yearly basis.
The total investment of Rs1.91 billion is inclusive of 62% equity (Rs1.2 billion) and 38% debt (Rs713 million).
The investment was made in the form of land, plant machinery and equipment, tanks and vehicles purchase.
The plant is an integrated unit producing international standard specifications lubricants in HDPE bottles, filling, capping and labeling of finished products on an automated high accuracy filling line. The expansion of the plant has allowed the manufacturing of jerrycans and drums from plastic for 18 to 210 litres of lubricants for industrial consumers.
