Japanese oil company JX Nippon is restructuring its lubricants division for greater efficiency.
On Feb. 5, JX officials detailed the reforms as part of a strategic review of the lubricants sector. According to a company press release, JX will abolish the lubricant sales subdivision as well as the lubricant oil supply subdivision, which are separate bodies under the current structure.
The current organization will remain in place until the end of the fiscal year, March 31. Starting April 1, JX will consolidate and streamline these two subdivisions into one body. This new and larger lubricants section will handle the duties of the former bodies. JX representative Hayashi Suzuki told Lube Report that this process was undertaken for efficiency and noted that the old system wasnt working as planned.
The move is also seen as a nod to government officials in Tokyo which have criticized the company recently for its lack of transparency.
It has been a rough couple years for JX on the lubricants front as it been forced to manage repeated crises over safety at its Mizushima plant in Okayama prefecture. On Dec. 25, 2012, the Ministry of Economy, Trade and Industry imposed a host of administrative sanctions on the company after revealing that JX had failed to adequately maintain inspection records at its Mizushima B refinery. JX did not comment on whether these sanctions or the scandal surrounding Mizushima contributed to the decision to remodel its lubricant business.
Tokyo-based JX Nippon Oil & Energy Corp. is one of Japan’s largest petroleum companies. JX operates two API Group I base oil refineries in Mizushima with combined capacity of 7,900 barrels per day. The companys finished lubricant lines include automotive, industrial and marine lubricants and greases.