Idemitsu Kosan Co. reported a 5.6 percent increase in lube sales in the first half of its fiscal year and announced that it will merge management offices at its oil refinery and base oil facilities in Chiba, eastern Japan.
We want to improve competitiveness through rationalization of the oil refinery and petrochemical business by integrating both offices starting from October 2017, read a recent company statement.
By integrating personnel from the two units, especially where there are overlapping departments, the company wants to create a management that will be able to remain a winning player in Asia. The consolidation will not affect the capacity of its base oil production facilities in Chiba, which has capacity of 300,000 metric tons per year. Idemitsu said in a press release that the site has a 600,000 t/y hydrotreating unit and hydrodewaxing equipment with capacity of 90,000 t/y.
Negotiations to merge with Showa Shell Sekiyu K.K. are ongoing, although the company recently announced that the deal has been delayed indefinitely.
In the first two quarters of its 2016 financial year, which begins April 1, Idemitsu sold approximately 510,000 tons of lubricants, or 5.6 percent more than the same period last year. For its 2015 financial year, its number of service stations was reduced to 3,666 from 3,725. Currently, Idemitsu has 3,627 stations that serve as one of its channels for distribution of automotive lubricants.