Qingdao Copton Technology Co. made revenue of 730.7 million (U.S. $106 million) from lubricants in 2016, according to the companys annual report, in which the firm also announced plans to double its capacity with an additional blending plant in July.
Lubes made up 89 percent of Coptons 821 million in total annual revenue, which was up 15 percent from the year before. Motor oils sales increased 15 percent year over year to 668 million while industrial lubes revenue dropped 6 percent to 62 million. The addition of 74 more distributors nationwide during the year brought in the better performance in the automotive lubricants segment, accounting for 44 million in sales.
The companys net profit of 113 million was up 35.5 percent annually. Segment-wise, aftercare products made up 52 percent of Coptons gross profit, followed by motor oils at 38 percent and chemical products at 36.5 percent. Copton divested its chemical business, Qingdao Haichuan Chemical, and Haichuan subsidiary Ming Li Plastics, in October.
In July, Copton will start operating its 206 million facility in Qingdao. With capacity to produce 40,000 metric tons of lubes, the plant will double Coptons output. The plant will also have capacity to make 20,000 tons of antifreeze and 1,000 tons of brake fluids.
Copton raised approximately 324 million through its initial public offering on the Shanghai Stock Exchange in April 2016. The company buys API Group II base oils from major refiners including ExxonMobil and CNPC, along with additives from major international suppliers.