Indonesias national oil company, PT Pertamina Lubricants, signed an agreement recently to explore the possibilities of establishing a grease company with local subsidiaries of two Japanese firms.
Pertamina signed a memorandum of understanding last month with PT Mitsubishi Corp. Indonesia and PT NTG Indonesia to conduct a feasibility study for a grease business in Indonesia.
PT NTG Indonesia was established by parent company Nippon Grease Co. in December last year. The company produces grease, heat treatment oil, tool oil and lubricant oil and is present in Thailand and China along with its native Japan. Mitsubishi Corp. is a major Japanese trading company involved in base oil supply.
It is hoped that this joint study will grow the grease business chain in Indonesia by considering various aspects such as the technical and economic viability of the business and sales and marketing aspects, as well as how such business should comply with existing government regulations, said Afandi, the president director of PT Pertamina Lubricants, in a July 13 statement.
The global grease market is expected to grow by 7.4 percent to 1.31 million metric tons by 2025 compared to 2015, according to Japanese consultancy Fuji Keizai Groups World Lubricant and Grease Market report released late last year.In 2015, the grease market was 1.2 million tons, the report noted. Demand from China and Southeast Asias construction machinery and motor vehicle manufacturing sectors are growing, and we forecast the volume to increase slightly.