Jiangxi Trader Starts New Plant

Jiangxi Hua Hang Petro, a Chinese lube trader based in Jiujiang, Jiangxi province, will begin producing lubes at a local facility by the end of this month.

With a total investment of 200 million (U.S. $29.3 million), the facility will produce 10,000 metric tons per year of Hua Hang Petro-branded motor oils and industrial lubes.

The Jiujiang facility is just an expansion of my old facility, Zhang told Lube Report Asia. The project expands Hua Hangs existing, very small facility, which its president, Zhang Hua, established in 2013 under his Nanchang-based lubricant sales company, Runda Lubes.

Im aware how competitive the market is, but as a veteran lube dealer I have my advantages, especially when it comes to perceiving demand in small cities and villages.

For example, Zhang said hes aware that not all customers desire high-quality lubes made from imported base oils. I buy base oils from a mix of sources to produce different-quality lubes. Zhang said he mostly buys API Group II base stocks from sources such as Hainan Handi Sunshine, Shandong Fangyu Lubricants and Taiwans Formosa Petrochemical Corp.