ISLAMABAD, Oct 10: In a major development, Chinese lubrication Oil industry is ready to enter in Gwadar Free Zone Phase II as an affiliate of China’s enterprise “Hengmei Technological Grease Company” has agreed to establish lubricant blending plant in Gwadar.
According to a Gwadar Pro’s report on Monday, Hengmei Technological Grease Company has already been registered and incorporated in Security and Exchange Commission of Pakistan (SECP) and after signing the sub-lease deal agreement, it will make its debut in Gwadar Free Zone Phase II ushering in a brand-new chapter of lubrication manufacturing & industry in Gwadar Port.
Hengmei is an affiliate of the energy giant Sinopec, which focuses on development and production of greases for upstream petroleum exploration, production and refining. Sinopec namely China Petroleum & Chemical Corporation) is a Chinese oil and gas enterprise.
According to an official of Gwadar Port Authority (GPA), Hengmei has a wide scope of business to be set up in Gwadar including the sales and production of lubricating oil, grease, antifreeze, urea aqueous solutions and sealing grease. Apart from accelerating the industrialization process, it will provide numerous job and commercial opportunities for the local community.
“Owing to its excellent performance, Hengmei Lubricating oil was conferred with the honorary title of 2019 ‘leading brand’ in the Chinese lubricating oil industry by Chinese Lubricating Oil Brand Summit Committee in 2019,” he added.
It will be the fourth Chinese company to be making its mark in Gwadar Free Zone Phase II also called “North Gwadar Free Zone” which is in the phase of full-fledged development and construction.
Since Gwadar Free Zone Phase II went into formal action after the groundbreaking ceremony performed by Prime Minister of Pakistan on July 05, 2021, three Chinese companies have already made their formal entry in it.
The Chinese company Agvon formally set in motion its physical work by initiating soil testing investigation, first phase of infrastructure development plan. On the allocation of 10-acre land awarded to Chinese Company “Agvon” team is working round the clock. “As per agreement, Agvon plans to build a state of art Fertilizer Processing Plant within the stipulated time period.”
The second company Hang Geng has been allocated 10-acre land. It will launch infrastructure work after finishing the required licensing process as per set rules and regulation. The company intends to run a pharmaceutical factory that will produce medicine from animal skins.
The third company namely Essatex industries, has also entered into agreement. It has been allocated one acre of land. Apart from this, COPHC official said that there is also a big company that aspired for the allocation of 7.5 square km out of total 9.3 square km land of Gwadar Free Zone phase II.
This company announced to invest from $3 billion to $4 billion that will churn out more than 30,000 employments.
A senior official of Gwadar Port Authority (GPA) said that with the operationalizing of Gwadar Free Zone Phase II (under-developed), Phase I (already completed and functional) and Gwadar port, economic activity will generate $10 billion per annum.
Pakistan’s lubricant market size is forecast to reach $1.9 billion by 2025. Global Lubricants market involves gear and engine oil for industrial purpose, automotive usage and aerospace function. Its market size stood at $129.81 billion.