Petronas Triples Lube Capacity in China

Petronas Lubricants International on April 7 opened its second lube blending unit in Weifang, Shandong Province, bringing its total annual capacity there to 150,000 metric tons.

Costing U.S. $64 million and covering an area of 32,500 square meters, the new facility will more than triple output at Petronas Shandong location in the Weifang Economic Development Zone. The site had had capacity of 45,000 tons per year since Petronas established operations there in 2010 through its acquisition of Shandong St. Maria Lubricating Oil Co.

Petronas Lubricants International is the lubes arm of Malaysias oil and gas company, Petronas.

Weve been very optimistic about our business in China, which is growing rapidly, General Manager Wang Tianjie told Lube Report Asia. So we started to plan this second plant soon after our first plant was put into use.

The new plant includes five fully-automatic, high-speed filling lines imported from Italy.

We are hoping to continue to improve the quality and efficiency of our production to better meet the demands of our customers across China, Wang continued. This also goes in line with the national supply-side reform strategy.

The facility has also increased Petronas warehousing capacity, according to the representative. The location can now serve as both storage hub and freight station in China, making it possible for the branch to consider exporting as well.

Apart from its wholly-owned Shandong location, Petronass Chinese blending operations include facilities in Chongqing, Beihai and Dalian through its Yuchai Petronas Lubricant Co. joint venture formed in May 2013.

Established in 2010 as a wholly-owned subsidiary of Petronas Lubricants International, Petronas Lubricants International (Shandong) Co. supplies engine oils to automobile manufacturers and aftermarket channels, as well as industrial lubricants and greases.