LPC invests and proceeds to Joint Venture for a blending plant construction in Algeria
LPC A.E. signed a memorandum of understanding with Algeria-based company NAFTAL SPA, a subsidiary of Algeria’s largest state-owned oil company Sonatrach, to set up a joint venture to build a blending and production plant for oils and greases for cars, industry and shipping. LPC’s stake in the joint venture will reach 49% and NAFTAL SPA’s 51%. The investment cost for the construction of the plant with capacity of 55,000 metric tons of lubricants and 5,000 metric tons of greases, will amount to approximately €30 million and will be financed with equity and bank lending. The construction period is estimated at 24 months from the establishment of the joint venture.