Qatar Lubricants (QALCO) is owned by Qatar Industrial Services Establishment (QIS). It is situated within the port area at Mesaieed, built on land leased from Qatar Petroleum. It is the first and only lubricant’s blending plant in the state of Qatar, with undertakings given that no further licenses will be granted for similar projects.The Plant, of modern design, utilizes the computerized Automated Batch Blending (ABB) system. All equipments is to the highest industry standards.A base oil tank farm of 6,000 tonnes capacity has the advantage of the tankage linked to excellent deep water berthing facilities by two dedicated pipelines. The plant has a design capacity of 20,000 tonnes per annum per single shift. The US $ 16 million plants was built on a turnkey basis by international specialist contractors in collaboration with local construction company, Petroserv.A state-of-the-art laboratory complements the plant with the latest equipment, including atomic absorption. Qualified and experienced chemists check all lubricant output daily and external analysis work is also undertaken. Submissions have been made to the Department of Consumer Affairs (Ministry of Finance, Economy & Commerce) which should lead to accreditation; thus Government work. This sector potential will be developed to the maximum.Before operations began, a technical services agreement was considered and discussed in detail with a number of international oil companies from U.S.A, France, U.K and Italy. It was finally decided to work closely with Lubrizol, the large American oil additives company. This not only gave immediate access to the latest industry techniques, but also flexibility and independence allied to substantial cost savings.The Lubricant’s market in any county is very competitive, Qatar is no exception. For decades, major international lubricant supplier has been represented by well established local agents. Other market factors include products from G.C.C, exporters which are duty free while others a bare 4%, QALCO, therefore, faced a hostile marketing situation with traditional built-in-resistance to a newcomer.The corporate marketing strategy was to enter the retail automotive market with basis products whilst, at the same time, increasing product credibility in the commercial sector as the product range was extended and new additives were received.The industrial sector was defined as predominantly Ministers and large Government organizations being supplied by tender.