Petronas Expands Chinese Ops


Malaysias Petronas Lubricants International began the second phase of expansion on its lubricant blending plant in the Weifang Economic Development Zone in Shandong, China, on June 1.

The second phase of the expansion will see the Shandong plant upgraded with modern facilities and equipment, a highly automated production line, and increased storage tanks, a PLI spokesman told Lube Report Asia.

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Petronas expects the plant to be operational by the end of 2016, with capacity to produce around 150,000 tons of lubricants per year, which it values at around 2 billion (U.S $322 million). The company has two blending plants in Asia – the other is in Melaka, Malaysia, where it began producing from in 1994.

The second phase of expansion is an important milestone for Petronas Lubricants International as it lays a solid foundation for growth in the Chinese lubricants market, said Giuseppe Pedretti, Petronas Lubricants Regional Head of Asia.It demonstrates our commitment to bring technological and technical advancements to the lubricants industry in China, as well as our determination to meet the rapidly growing market demand for premium lubricants products.

PLI introduced its reformulated flagship product, Petronas Syntium, in China in April. In 2004, it set up Petronas Marketing China Company Ltd. to sell its lubricants in China. PLI manufactures and markets a range of automotive and industrial lubricants products in over 80 markets globally. PLI is the lubricants arm of Malaysian government-owned oil firm Petronas.