Japans Idemitsu Kosan Co. and Kuwait Petroleum International Ltd. plan to set up a joint venture todistributepetroleum products, including lubricants, in Vietnam.
The companies recently filed paperwork with the Vietnamese government to apply for the certificate needed to set up a joint venture company, which it will call Idemitsu Q8 Petroleum LLC. The 50-50 joint venture will be based in Hanoi and will market imported petroleum products throughout the country through wholesale and retail channels.
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Through the establishment of a petroleum product distribution company, Idemitsu and KPI will achieve a stable supply of products to the growing Vietnamese market, where demand for petroleum products is expected to follow a steady upward trend, said Idemitsu Kosan in a press release.
We will apply for a retail license to set up service stations and plan to market lubricants through service stations, an official from Idemitsu Kosan told Lube Report Asia.
French consultancy Ipsos Business Consulting forecast Vietnams lube market to increase from 247 million liters in 2014 to 287 million liters in 2019, or at a compound annual growth rate of 5 percent.
Kuwait Petroleum International is the downstream marketing arm of state-owned Kuwait Petroleum Corp.The company produces and markets its Q8 brand of automotive and industrial lubricants in Asia, North America and in Europe, where it has 4,790 fuel service stations.
Idemitsu Kosan launched a 31,000-metric ton per year lubricant blending plant in Haiphong City, Vietnam, in 2014.