Oil depot operator Linxan Petrochemical opened a blending plant Friday in the port city of Tianjin, China, with capacity to make 200,000 metric tons per year of lubricants. The facility cost 400 million (U.S. $60 million), according to a press release from the Tianjin Economic-Technological Development Area.
Linxan called the plant one of the largest blending facilities in Northern China. It was built at a depot that the company already operated in Tianjins Nangang Industrial Zone, a hub for the oil, chemical and heavy metals industries. The site also contains a 70,000 square meter tank farm for base oil storage.
Linxan, which was founded in 2010, already stored and traded finished lubricants and base oils. Its depot is 61,300 square meters, which classifies the company as a second-class depot operator in China. Linxan also operates a base oil exchange at the port.
Linxan already operated a smaller blending plant, but company officials said the new facility is more highly automated and should produce higher quality lubes. The company plans for the facility to make both automotive and industrial lubricants and said its opening should allow the lubricant business to grow.