Malaysian lube manufacturer Hyrax Oil plans to construct a blending plant in Mozambique by the end of this year, in partnership with that countrys state-owned Petroleos De Mocambique (Petromoc), according to a report Friday by Bernama, Malaysias state-run news agency.
Speaking at the two companies recent signing ceremony, Hyrax Managing Director Datuk Hazimah Zainuddin said that the two parties will register a company under the name of Petromoc-Hyrax Oil International Ltd.
Hazimah Zainuddin estimated at the signing that the new plant will have the capacity to produce around 40,000 t/y of finished products annually, with room for expansion. Under the agreement, Petromoc will prepare a site for the plant in the coastal city of Maputo, along with storage facilities at the nearby Matola port.
In Bernamas report, Hazimah said that the project will cater to Mozambiques lubricant demand for around 40,000 t/y, and will also export the new joint ventures range of automotive, industrial, marine and specialty lubricants products all over Africa. Mozambique is a member state of the South African Development Community, which has a free trade agreement among 15 member states. Benefits include exemptions from taxes and stamp duties, according to the communitys website.
Hazimah Zainuddin is quoted as having said that the Malaysian companys initial investment of U.S. $10 million towards the approximately $50 million project will ultimately increase Hyrax Oils revenue by as much as 30 percent this year.
Hyrax Oil started supplying lubricant products to Petromoc around five years ago.