Similar to Idemitsus venture, the JX plant will be based in Haiphong Citys Dinh Vu Industrial Park. According to company officials, the plant will have a manufacturing capacity of 40 million liters of lubricants per year by early 2014 when full commercial production begins.

JX Nippon has yet to officially name the Vietnamese company, but reported it will have $10.1 million in registered capital, approximately 100 employees, and will focus its production efforts on engine oil for motorcycles, automobiles, general industrial lubricants and other related products.

By comparison, the Idemitsu plant will have a manufacturing capacity of approximately 35 million liters of lubricants per year, with $23.3 million in registered capital. Like the JX company, it will focus on engine oil for motorcycles, automobiles, general industrial lubricants and other related products. The plant is scheduled to come online January, 2014.

Sparking JXs decision, which was announced in August, is the sustained growth of the Vietnamese economy. Moreover, Vietnam remains a significant market for lubricants as a result of its ubiquitous presence of motorcycles. In 2011, there were more than 3.3 million new motorcycle sales in the country making it the world’s fourth largest motorcycle market after China, India and Indonesia.

With a population nearing 90 million people and a high economic growth of about 7 percent, Vietnam continues to be a prime target for Asian lubricant companies, which recognize its demand for lubricants.

The move also falls in line with JXs business strategy to expand into the Southeast Asian market. In its most recent Medium-Term Management Plan, JX indicated that it will prioritize strengthening its lubricants business across Asia. JX has set a target to sell more than 900 million liters of lubricants per year by 2015 – across a range of emerging markets including Southeast Asia, India, the Middle East, Africa and Latin America.