Pakistani lube supplier Hi-Tech Lubricants Ltd. started commercial production at its blending plant in Lahore early this month following approval from the countrys Oil and Gas Regulatory Authority.
The initial registration is for one year with effect from July 21, 2016 and is renewable on a yearly basis, Hi-Tech said in a regulatory filing. The plant, with blending capacity of 30,000 metric tons per year, began production on Aug. 3.
The company had raised about Rs 1.81 billion (U.S. $17.3 million) earlier this year through its initial public stock offering to launch a chain of retail fuel outlets in the domestic market, and to install additional filling lines at its blending plant to tap potential growth in the countrys industrial sector.
Hi-Tech, which set aside Rs 200 million from the IPO proceeds to invest in the blending facility and implement jerrycan- and drum-filling lines, expects the additional filling lines to help it sell more products in bulk, and to assist packaging and sales of industrial products and process oils. It also expects a boost in sales of drums and jerrycans to users in chemicals and paints industries.
The company incorporated a wholly-owned subsidiary named Hi-Tech Blending (Pvt.) Ltd. to set up the plant, which has a total project cost estimated at around Rs 1.91 billion. Hi-Tech has a deal with South Koreas SK Lubricants Ltd. which allows it to distribute and toll-blend SKs Zic brand of finished lubricants.
Hi-Tech also expects the additional filling line to allow it to tap what it has identified as huge potential in bulk export sales to Afghanistan through its recently incorporated subsidiary there.