UMW Plans Malaysian Blend Plant


Malaysian conglomerate UMW Holdings Bhd. says it has decided to build its third lubricant blending plant – a facility that would open near Port Klang, Malaysia, in two to three years.

A spokesman confirmed that the project involves a six-acre site near the west coast port city, but declined to provide further details as it is still in the planning stage.

According to local news reports, officials said Friday that UMW subsidiary UMW Lubricant International currently holds 9 percent of the Malaysian market and aims to increase that share to double digits by 2019.

UMW currently operates blending plants in Shah Alam, Malaysia, and in Xinhui, Guangdong Province, China. The former has capacity to make 40,000 metric tons per year and toll blends finished lubes for Shells Pennzoil segment and Spanish oil company Repsol. The Shah Alam plant also makes lubricants marketed under UMWs own brand, Grantt.

The Xinhui plant has capacity of 50,000 t/y and toll blends for a number of marketers, including Repsol, Shell, Petronas, Citgo and GEP. According to a recent company statement, Operations in China continue to perform well due to the strong demand for lubricants from [automaker] FAW Mazda andHongqi, and the company expects higher capacity utilization at our lubricant plant in China.

UMW Lubricant International Sdn. also has a principal agency agreement with Repsol giving UMW exclusive rights to blend and distribute premium Repsol automotive lubricants in Southeast Asia, China and Indo-China.

Last year, UMW set up a joint venture to supply Grantt lubricants to Indonesian transportation and logistics company Blue Bird Group.