Chevron Lubricants Pakistan announced that it is expanding its blending plant in Karachi and that it will extend its lube retail network within the country.
By the end of next year, the company will expand production capacity at its blending facility in the West Wharf area of Karachi by 36 percent, or from 49,000 metric tons per year to 67,000 t/y, a company official told Lube Report Asia on the condition of anonymity.
The United States-based energy giant will also expand its network of oil change facilities in Pakistan by 130 percent, adding 85 oil change facilities to reach a total of 150 by the end of 2017. The company said it will spend a combined Rs 2 billion (U.S. $19 million) on the initiatives.
According to local news reports, Chevron officials described Pakistans lubricant market as having attractive margins. An article in The Express Tribune last week quoted Chevron Pakistan Lubricants Chairman Muhammad Najam Shamsuddin saying, In Chevrons worldwide lubricants portfolio, Pakistan is one of the top three markets based on its high profit margins. Last years gross profit was Rs 3 billion.
The company commands 24 percent of Pakistans lubricants market, he added.
Chevron divested its fuel retail and storage business in the country to Total Parco Pakistan in 2014.