Russian automotive chemicals producer Suprotec announced plans for a grease and metalworking fluids manufacturing venture in the St. Petersburg area, hoping to capture a portion of the market after the retreat of Western lubricant suppliers.
The facility will have capacity to make 6,000 metric tons per year of greases and an equal amount of metalworking fluids, the company told Lube Report today, adding that it will be located on a hectare plot on the northern outskirts of St. Petersburg in the Novoorlovskaya tax-free economic zone.
The project is still under development, with production targeted to begin in 2025 or 2026. The initial investment will be 920 million rubles (U.S. $9.7 million), with a possibility of expansion.
“The strategic direction of our company’s development is not production only,” Suprotec Director Sergey Zelenkov told Lube Report. “We strive to become a center for resource and energy saving engineering solutions.”
The company’s research and development team develops solutions for energy-saving technologies for industries, such as power generation, the military industry complex, marine and machine building, according to Suprotec.
“Development of energy saving culture is a trend right now in Russia,” Zelenkov said.
The company also plans to produce chemical additives for its own greases and metalworking fluids.
Russia produced 44,000 tons of greases in 2022 but consumed about 60,000 tons, according to Suprotec. A number of foreign companies exited the market, though, in response to Russia’s invasion of Ukraine. Suprotec believes the resultant supply gap could give it room to capture at least 10% of the market.
The Russian market is shifting toward importing products from Asia, especially in the lubricant and automotive sectors. Meanwhile, a swath of new domestic companies are trying to gain footholds.