Japans Idemitsu Kosan Co. announced last week the start-up of a new lubricant plant in Haiphong City, Vietnam. Officials said the 31,000 ton per year facility is meant to take advantage of Vietnams quickly growing market.
With a population of roughly 90 million in 2013, of which more than 60 percent is under the age of 30, Vietnam has been enjoying… economic growth of approximately 6 percent annually, Idemitsu Kosan said in a news release. It is forecast that the demand for lubricants in Vietnam will continue to grow at an ever greater rate.
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Until now, lubricants sold by Idemitsu Kosan in Vietnam were produced by toll blenders. The new plant was completed in December and has begun supplying product to Japanese motorcycle and automobile manufacturers in Vietnam. The plant will make automotive and industrial lubricants.
Idemitsu Kosan said it also intends the Haiphong plant to serve as a base for sales to other parts of Southeast Asia. It has set a goal for the plant to reach sales volumes of 20,000 tons and revenue of 950 billion dong (U.S. $45 million) by 2015.