Russian lubricant marketer Alfa Chem Group is expanding the capacity of its synthetic motor oil production line by 2,500 tons per year, according to a recent news release by the company.
The budget for the project is U.S. $361,000. About 70% of the cost will be financed by the state Industrial Development Fund of Russia, and the rest will be covered by the company.
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Alfa Chem Group’s blending plant located in Armavir, Krasnodar region, has capacity to produce 25,000 tons of finished lubricants. The expansion will increase the plant’s capacity by 10%.
“The technological capabilities of the existent production is not enough for filling all products,” said Maxim Deryabin, the general director. “The new production line includes an automatic filling line, which will help us achieve higher produced volumes filled in 4- and 5-liter canisters.”
The investment will reduce Russian reliance on imported finished lubricants, the company said.
“According to our estimates, a third of the Russian motor oil market is supplied by foreign producers,” Deryabin said. “We believe that this project will help reduce the share of imports in the domestic market. We plan to sell our new products locally only.”
Alfa Chem Group was founded in 2010. Since then, it has grown into one of the largest lubricant producers in the southern part of Russia.
The company successfully markets its AKross-branded motor oil and industrial lubricants. It also produces brake fluids, oil filters, coolants, windshield wiper fluids and other car care products. The production site in Armavir includes a 2,200-ton-capacity tank farm for base oil storage with a loading platform. The company also produces plastic canisters ranging from one to 10 liters and offers its services for toll blending.