Chinas Dongfeng Motor Corp. (Shiyan) Lubricating Oil Co. recently announced plans to build its second blending plant by April 2018.
With a total investment of 65 million (U.S. $9.4 million), Dongfeng will build the plant on a 433-acre plot in a development zone in Shiyan, Hubei Province, where the company is headquartered and has an existing plant. The facility will have annual capacity to make 100,000 metric tons of industrial and automotive lubricants.
Production from the plant will supply factories and mining companies as well as dealers and original equipment manufacturers across the country.
We want to increase our capacity to meet the demands of our clients, branding official Sun Wei told Lube Report Asia, adding that the new plant will help the company standardize and increase the efficiency of its supply chain.
State-owned Dongfeng Motor Corp. is among Chinas four largest automakers. Established in 1998, Dongfengs lube subsidiary now has around 200 products across 20 lines including engine oils, transmission fluids, greases, brake fluids, power steering fluids, anti-freeze and anti-rust products, AdBlue diesel exhaust fluids and oil filters.
Apart from supplying products for Dongfeng vehicles, the firm is also cooperating with Petronas Lubricants International, Lubrizol Corp., Afton Chemical, PetroChina, Sinopec and other big industry players to develop lube oils and chemical products for automobiles.
The firm opened its first blending plant in April 2016, which was also the first such plant in Shiyan. With its new plant, Dongfeng Motor Corp. (Shiyan) Lubricating Oil Co. said it hopes to become the biggest lubricant manufacturer in Mid-China.