Pertamina Mulls China Blend Plant


Indonesias Pertamina Lubricants denied last week that it has settled on a plan to build a lubricant blending plant in China. A spokesman told Lube Report Asia that is one of several options the company is considering to expand in China.

The English newspaper Jakarta Globe published an article last week quoting Pertamina Lubricants President Director Gigih Wahyu Hari Irianto saying the company plans to set up a lubricant plant in Guangzhou, China, in 2017. The report pegged the potential plants annual production capacity at 90,000 metric tons and said Pertamina was negotiating with an unnamed Chinese partner for the project.

[Pertamina is] aiming to expand its presence in China, the company spokesman said Friday. At the moment, we are still evaluating every possibility that we could have in the future in order to strengthen our presence in China.

Pertamina Lubricants has been planning for more than a year how to expand in China, which is one of the worlds two largest lubricant markets, along with the United States. Pertamina is the national oil company of Indonesia, and already has a dominating share of that market.

To strengthen penetration in overseas markets, Pertamina will focus on the Chinese market, the mining sector in Australia and the shipping sector in the Middle East, the company said in a statement in June 2014. Pertamina aims to be among the 15 largest lubricant producers in the world in 2018 by strengthening domination in the domestic market and expansion abroad.

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