GTS Expands Blend Plant


GTS Chemical this month completed an expansion of its blending plant in Shandong province, China, intended to assist the growth of its fledgling lubricant business.

The company, which is listed on the London Stock Exchange, opened a second manufacturing unit at its headquarters in Shandongs Gaotang County. The new unit has capacity to produce 60,000 metric tons per year and cost 300 million (U.S. $46.9 million).

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The new facility allows us to produce 90,000 tons of lubes annually, a leap from the previous 30,000 tons by our old facility, said an official who identified himself as head of GTSs lubes business but gave only his family name, Han.

The new factory will produce engine oils and industrial oils to be sold under the Ogistar brand name, Han said. Approximately 60 percent of the engine oils that it sells are for heavy-duty diesel-powered trucks, while the other 40 percent are for gasoline-powered vehicles. GTS buys base stocks and additives mainly from multinationals, such as SK, Formosa, Afton and Infineum.

Han acknowledged that Ogistar is a young brand, having launched in mid-2013, and that it faces an intensely competitive market. But he also sees great opportunities for the growth.

We are young, but we are fearless as we have a lot to offer from quality to quantity, especially with our new facility, he said.

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