Malaysias state-owned Petronas Lubricants International plans to increase its presence in Chinas industrial diesel engine oil market after raising its stake in the Yuchai Petronas Lubricants joint venture.
PLI bought an additional 12 percent in Yuchai Petronas, boosting its stake to 50 percent. Its partner, Yuchai Lube Co., is a subsidiary of diesel engine manufacturer Yuchai Group.
China is Petronas fastest growing lubricants market, where PLI sold more than 100 million liters of motor oil annually in 2014 and 2015. We believe China has great potential and opportunities to be the worldwide leader in automotive engineering, manufacturing and technology in the future, said PLIs Managing Director and Group Chief Executive Officer Giuseppe DArrigo in a press release.
This will help PLI to strengthen our position with new technologies in the transportation and industrial sectors - on-road and off-road - for diesel engine oils, Chief Commercial Officer Giuseppe Pedretti told Lube Report Asia.
The joint ventures focus for 2016 is to further expand its product offering with a robust portfolio that caters to the unique demands of Chinas industrial oil sector. Our efforts in research and development will also be ramped up to deliver better quality diesel engine oil level API CJ-4 and above, he added.
PLI had a 38 percent stake in Yuchai Petronas when in was formed in 2013. According to PLI, the joint venture grew an average of 10 percent the first two years. In 2015, the partnership opened Guangxi Nanning Yuchai Petronas Lube Co. Research and Development Centre in Nanning, Guangxi province. It was built to complement Yuchai Groups diesel engine R&D center and serves as a global resource on diesel engine oils for Petronas.
PLI, headquartered in Kuala Lumpur, has more than 30 marketing offices in 26 countries. The Yuchai Group manufactures, assembles and markets a wide variety of light, medium and heavy-duty engines for trucks, buses, passenger vehicles, construction equipment, marine and agriculture applications, as well as diesel power generators in China.