German lubricant marketer Lubricant Consult GmbH opened a blending plant in Binan, the Philippines, saying the facility will serve as its springboard for growth in the surrounding region.
The company, which is based in Maintal, Germany, did not disclose the cost or capacity of the project but did say that the production plant and a warehouse occupy 1,200 square meters. The production facility has capacity to make 900 metric tons of grease per year in a single shift, and equipment in its laboratory can also produce specialty oils and greases.
The new production site opens up opportunities to supply the increasing demand of the Asian market more flexibly, said Roland Metelmann, president of subsidiary Lubcon Lubricants Asia Pacific Inc.
Lubcon joins a long list of lubricant manufacturers from around the world investing in manufacturing facilities in Asia to meet growing demand in the region. Relatively few of them choose to build in the Philippines, but Metelmann said the archipelago nation had several selling points for Lubcon.
We selected the Philippines mainly for the central geographical location to our key markets – the Association of Southeast Asian Nations and the rest of Asia-Pacific, he said. It also offers a skilled English-speaking labor force and excellent government support and incentives. The Philippine Economic Zone Authority lets us import and export tax- and duty-free fast and efficiently.
The new facility employs 19 people and is located in a free trade zone in the city of Binan on the island of Luzon. Being in a free trade zone will make it easier and faster to export products to customers in other countries.
Lubcon makes industrial lubricants and greases along with pastes, aerosols, cleaners and lubrication systems. Officials said the new plant will make some products for sale in the region but that it will also continue to supply some products from its plant in Germany.