Karachi, Pakistan-based Hascol Petroleum Limited announced that its board of directors has approved the building of a lube oil blending and grease plant worth PKR 1.8 billion (US$17.2 million).
In a notice sent to Pakistan Stock Exchange, the company said land measuring approximately six acres has also been acquired at Port Qasim for the blending plant. The lube blending plant, which will be built in collaboration with Germanys Fuchs, is expected to be commissioned in two years.
According to Hascol's website, the company is presently obtaining its finished lubricants via a toll blending agreement with Fuchs Lubricants of Germany. Hascol is a major supplier of Lubricants to the Pakistan Army.
Hascol reported PKR904 million earnings in its 9M16 result, up 20 per cent year-on-year. However, on a sequential basis, earnings declined 29 percent quarter-on-quarter to PKR292 million in 3Q16 compared to PKR410 million in the preceding quarter.