Idemitsu Eyes $21M Expansion


Idemitsu Lubricants America Corp. is investing $21.2 million to expand its lubricants warehouse in Indiana, and increase blending and packaging capacity.

Within the next year we are adding a new, dedicated blending vessel for high performance lubricants to expand our blending capability, and over the next four years plan to add tankage and other equipment to expand capacity, Tammi Walts, senior vice president of manufacturing and global business operations, told Lube Report. Our automotive factory fill and service fill business is continuing to have steady growth, and we are aggressively expanding our industrial oil sales, including growth in new sectors such as power generation.

According to Walts, the initial warehouse expansion in Jeffersonville will add square footage. We are adding a new 105,000 square foot warehouse and a second entrance to our facility as well as expanding our office and lab by adding 5,000 square feet of space, she said. In addition, we are completely renovating our existing offices and lab. After the building expansion, we plan to replace, upgrade and add to our packaging lines (quart, drum and utility packaging lines) to expand capacity and increase automation.

The expansion is expected to create up to 23 new jobs by 2014. Idemitsu employs 59 full-time workers at the Jeffersonville facility and plants to begin hiring for its expanded warehouse later this year. Walts said the company hopes to complete the expansions first phase by October 2012, its 20th anniversary at the location.

Since October 1992, the company has produced engine oils and automatic transmission fluid for major auto manufacturers at its blending plant on its 30-acre site in Jeffersonville. It also makes metalworking and maintenance fluids such as coolants, rust preventives, industrial chain oils, turbine oils and greases.

The Indiana Economic Development Corp. said it offered Idemitsu Lubricants America up to $150,000 in performance-based tax credits and up to $40,000 in training grants based on the companys job creation plans. The city of Jeffersonville initially approved additional property tax abatement at the request of One Southern Indiana, which is a local economic development agency.

Idemitsu Lubricants America is a subsidiary of Idemitsu Kosan Co. of Japan.

In its Global Lubricants 2009: Market Analysis and Assessment report, Kline and Co. estimated Idemitsus global finished lubricants market share at 2 percent and ranked it eighth on its list of the 18 leading global finished lubricant suppliers. The list was topped by Shell at 13 percent. In its home market of Japan, Idemitsu had an estimated leading overall market share of 22 percent, according to Kline, just slightly ahead of JX Nippon Oil.

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