Taiwanese state-owned petroleum company CPC Corp. began construction of an automotive lubricant blending plant in southern Vietnam this month after a one-year delay, the company confirmed.
The project is a joint venture between CPC, Hexing Chemical Co. and Unishine Chemical Corp., a group that is collectively known as Maxihub Co. We originally planned to begin construction in 2016, but due to various changes in regulations, the application process was delayed, said Spenser Lee, manager of the department of public relations at CPC.
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Operation of the plant in Ong Keo Industrial Park in Dong Nai province is expected to begin in the fourth quarter of 2019. The plant is being designed with capacity to produce approximately 30,000 metric tons per year of CPCs Mirage-branded motor oils. Vietnam consumes around 7,000 t/y of CPC-branded lubes currently, according to the company.
As Vietnams economy continues to expand, in addition to the production of motor oils, diesel engine oils, petrol engine oils, marine oils and mechanical oils, Maxihub will also produce industrial oils like hydraulic oils, gear oils, extreme pressure machine oils and process oils like spindle oils and rubber softening oils, Lee told Lube Report.
Vietnam has seen a recent influx of foreign lubricant brands in Vietnam, but CPC said it has been marketing its lubricants in Vietnam for many years. Upon introduction of industrial oil production, the firm will initially focus on Taiwanese industrial customers. It then plans to develop its portfolio and expand into other end use applications such as trains, steel mills and cement plants. Geographically, its next conquest is northern Vietnam.
CPC has an 80,000 t/y lubricant blending plant in Taiwans southwestern city of Chiayi, and a 3,300 t/y grease plant. The company said it plans to invest in a two-phase project to build storage facilities for base oils and additives at Taichung Port in central Taiwan to strengthen its international supply channels for lubricants and related products.