Repsol reached agreement with UMW Group to produce and distribute Repsol lubricants throughout China, Malaysia and other countries in the region, including Singapore, Brunei, Papua New Guinea and Myanmar.
The five-year deal is part of Repsols international branding expansion plan. The Madrid, Spain-based company said it expects to market more than 20,000 tons of lubricants by the fifth year in China, Malaysia and the regions other countries, equivalent to more than 25 percent of its annual sales in Spain.
UMW will distribute the lubricants as part of our agreement, Repsol spokesman Kristian Rix told Lube Report. We will be using UMW [blending] plants in Malaysia and China.
Repsol sells lubricants to the automotive, motorcycle and industrial sectors. We anticipate automotive and motorcycle demand especially, and expect significant growth in both Malaysia and China for both these products, Rix noted.
UMW is a conglomerate based in Malaysia involved in four core businesses: automotive, equipment, manufacturing and engineering, and oil and gas. Beyond Malaysia, it also has an international presence in Singapore, Indonesia, Thailand, Myanmar, Vietnam, Papua New Guinea, Australia, Taiwan, China, India, the United Arab Emirates and Turkmenistan.
Fuchs Petrolub AG calculated Chinas lubricants demand last year at 5.58 million metric tons.
Currently Repsol markets its lubricants directly and through distributors in more than 60 countries in America, Europe and Asia. The company is present in Asia in Indonesia, Japan, Philippines and Taiwan, where it produces and distributes lubricants locally.
Repsol has two base oil refineries: a 2,200 barrels per day API Group I plant in Puertollano, Spain, and a 2,650 b/d plant, primarily Group I, in Cartagena. In June, SK Lubricants of Seoul, South Korea, announced plans to partner with Repsol YPF to build a new 13,300 b/d Group III base oil at Repsols Cartagena, Spain, refinery. It is scheduled to begin production in 2013.