Lukoil opened a blending plant in Kazakhstan last week, saying it will use the facility to optimize its supply in that country, to penetrate China more effectively and to expand in Central Asia.
The U.S. $94 million plant has capacity to produce 100,000 metric tons per year of lubricants. It is located near Almaty, Kazakhstans largest city, in the Almaty region that borders China. Kazakh Prime Minister Askar Mamin and Vagit Alekperov, the head of Lukoil, attended the opening ceremony.
Besides the Kazakh and Chinese markets, Lukoil said it will use the plant to make products for Central Asia, Afghanistan and Mongolia.
The location of the facility optimizes the logistics of our lubricants supplies in Kazakhstan and other countries of Central Asia, the company said in its Sept. 20 news release.
Officials said the plants level of automation will allow products to be shipped within 24 hours of when they are ordered. The plant will produce around 800 types of products, including some sold under Lukoils flagship brand Genesis in small and large volume canisters and barrels. The plant has a 9,000-ton base oil tank park and 34 reservoirs for storage of finished products.
The plant is close to a railway intersection that leads to a rail line to Russia and has a railway siding and offloading terminal. We are just 10 kilometers away from the main highway that leads to the border with China, the company said.
The plant will employ more than 200 workers.
Lukoil is the largest lubricant marketer in Russia and one of the largest in Kazakhstan. In 2018 it held 45 percent of Russias total combined base oils and lubricants output, or around 1.1 million tons.
Kazakhstan consumes around 140,000 tons of finished lubricants annually, according to Kazakh lube marketer Hill Corp.
This plant is Lukoils fifth foreign lubricants factory, joining others in Finland, Austria, Romania and Turkey.