JV Builds Rerefinery in Zhuhai


CleanOil Investment and Hong Kong conglomerate Jebsen Group announced last week the formation of a joint venture to build a used lubricant rerefinery in Zhuhai, China.

The plant is scheduled to open in the second half of this year with capacity to make 20,000 metric tons per year of API Group II base oil.

The companies billed the project as a boost to Chinas still under-developed rerefining industry.

Jebsens expertise and reach in the industrial and automotive sectors will help us grow the market for high-quality recycled lube oil to benefit the environment and contribute to Chinas continuing economic growth, CleanOil Chairman Antony Louis Marden said in a Feb. 3 news release.

According to the companies, China collects a relatively large portion of the used lubricants that it generates – between 60 percent and 70 percent of the estimated 8 million t/y of lubricants that it consumes annually. But the volume of waste oil that is recycled into base stocks amounts to just 10 percent of lubricant consumption. Jebsen and CleanOil noted that the Chinese government is promoting greater use of clean energy, and they expressed confidence that the country will recycle larger amounts of used lubricants in the future.

CleanOil, also based in Hong Kong, operates a rerefinery and lubricant blending plant there and has been marketing rerefining technology in China and abroad. Jebsen is widely diversified in activities that range from manufacturing of consumer electronics and building materials to marketing of beer, wine and Porsche autos to provision of services in broadcasting, automation and logistics.

Jebsen, which also does business in other countries, said it views the Zhuhai project as part of a commitment to promote sustainable business that helps improve Chinas environment.

Jebsen firmly believes in the continuing growth of China and is investing in businesses that bring the Chinese consumers a healthier and more varied and fulfilling lifestyle, Chairman Hans Michael Jebsen said.

The rerefinery is located in Zhuhais Gaolan Port Economic Zone. CleanOil said it is already under construction, but the companies did not disclose its cost. CleanOil says its technology produces relatively high yields of base oil compared to other Chinese rerefineries.