Karachi, November 28, 2024 – HTL Hi-Tech Lubricants Limited (HTL) has announced a significant milestone, commencing local production of high-end synthetic lubricants under its collaboration with South Korea’s SK Enmove Co. Ltd. (SKEN).
In a communication to the Pakistan Stock Exchange (PSX), HTL referred to its earlier disclosure on June 28, 2024, regarding the signing of a Memorandum of Understanding (MoU) with SKEN, a pioneer in Korea’s lubricant market. The agreement enables the supply of specialized additives, ingredients, and proprietary formulas required for blending and packaging international-quality lubricants under the renowned brand name ZIC.
This development marks a strategic shift for HTL, aimed at reducing costs and improving competitiveness in Pakistan’s lubricant market. By moving production to its wholly-owned subsidiary, Hi-Tech Blending (Pvt) Ltd., HTL anticipates significant savings on duties and taxes compared to importing fully blended and packaged products from South Korea. The company also expects enhanced profit margins, allowing for more competitive pricing in response to evolving market trends.
HTL confirmed that after receiving the necessary raw materials and formulations from SKEN, it successfully commenced blending operations at its Hi-Tech Blending facility on November 27, 2024. These efforts underscore HTL’s commitment to delivering premium-quality synthetic lubricants tailored to international standards.
The production of ZIC lubricants locally is a key milestone in HTL’s growth strategy, reinforcing its position in Pakistan’s automotive and industrial lubricant sectors. The company expects this partnership to boost its market share by offering cost-effective, high-quality alternatives to imported products.
HTL’s collaboration with SKEN reflects a broader trend of localization in Pakistan’s industrial sector, driven by the need to optimize costs and cater to growing consumer demand. This initiative aligns with the company’s long-term vision to expand its footprint and strengthen its brand presence in the region.
The local production of ZIC lubricants not only represents a strategic advantage for HTL but also supports the broader economic goal of reducing reliance on imports, fostering local industrial growth, and creating employment opportunities. With this development, HTL is poised to enhance its competitiveness and deliver value to its stakeholders while maintaining its reputation for excellence.
