Expanded lube-oil blending plant: Hi-Tech Lubricants starts commercial production
News well-received by investors as company’s share price surged by 5%
The plant is an integrated unit producing international standard specifications lubricants in HDPE bottles, filling, capping and labelling of finished products on an automated high accuracy filling line. . PHOTO: MOHAMMAD NOMAN/FILE
KARACHI:
Hi-Tech Lubricants has started commercial production from its expanded lube-oil blending plant established at a cost of Rs1.91 billion in Lahore, according to a bourse filing on Wednesday.
“Now, after completion of due formalities, the Plant ‘Hi Tech Blending Private Limited’ would start its commercial production from today {Wednesday},” said Hi-Tech Lubricants Company Secretary Muhammad Imran, in a notification to the Pakistan Stock Exchange (PSX).
The lending plant manufactures engine oil imported from South Korea. ZIC and SK are its products available in the markets. The announcement was well received by investors as the share price surged by the maximum limit of 5% during the day, or Rs4.02, and closed at Rs84.55 with a turnover of 4.48 million shares.
“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). Furthermore, the equity investment includes Rs200 million raised at the Exchange through issuance of shares to institutions, high net worth investors and general public.
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 labelling 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. Earlier, the company had announced exporting lubricants to Afghanistan as well.
Published in The Express Tribune, August 4th, 2016.
Hi-Tech Lubricants has started commercial production from its expanded lube-oil blending plant established at a cost of Rs1.91 billion in Lahore, according to a bourse filing on Wednesday.
“Now, after completion of due formalities, the Plant ‘Hi Tech Blending Private Limited’ would start its commercial production from today {Wednesday},” said Hi-Tech Lubricants Company Secretary Muhammad Imran, in a notification to the Pakistan Stock Exchange (PSX).
The lending plant manufactures engine oil imported from South Korea. ZIC and SK are its products available in the markets. The announcement was well received by investors as the share price surged by the maximum limit of 5% during the day, or Rs4.02, and closed at Rs84.55 with a turnover of 4.48 million shares.
“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). Furthermore, the equity investment includes Rs200 million raised at the Exchange through issuance of shares to institutions, high net worth investors and general public.
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 labelling 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. Earlier, the company had announced exporting lubricants to Afghanistan as well.
Published in The Express Tribune, August 4th, 2016.