Tianhe Introduces Engine Oil Packages

Tianhe Chemicals reported last month that it has launched lubricant additive packages for passenger car engine oils meeting the API SN and SL sequences as part of its efforts to introduce more profitable products.

A Nov. 9 filing with the Hong Kong Stock Exchange mentioned two packages, TEC90003 and P-TEC9100, which are used to formulate SN and SL engine oils, respectively.

The company continues to commit to the researching, developing and marketing of innovative products with a market demand oriented approach, management said in the filing, adding that the two packages were well received by customers.

Tianhe claims to be the largest lubricant additive supplier in China, but is substantially smaller than the industrys leading suppliers, Lubrizol Corp., Infineum, Afton Chemical and Chevron Oronite. As early as 2014, in the run-up to its initial public stock offering, Jinzhou, China-based Tianhe expressed ambitions of reaching the scale to rival those companies, largely by developing more and more modern packages and by shifting its product mix from additive components to packages.

The filing did not state whether it offers other packages for gasoline-powered passenger car engine oils, but its website does not list any. It does list four packages for diesel engine oils, two said to meet the performance requirements of API CF and two that do not indicate a performance category. The company also offers two packages for motorcycle motor oils and one general purpose engine oil package, along with packages for several other types of products including marine engine and cylinder oils, greases and hydraulic fluids.

API SN is the second-newest light-duty engine oil category introduced by North American auto and oil industries, having been launched for model year 2011 vehicles. SL was introduced with model year 2004 vehicles, but there is still significant demand for oils of that quality in China.

Tianhes filing said it is also testing and developing more than 10 other products including another package for marine cylinder oils and packages for heavy-duty diesel engine oils for the Chinese market. Results to date have been successful, it said.

The company believes that the above-mentioned results have laid down a solid foundation for the production of new products, expansion of markets and increase of revenue in the future, the filing said.