Amalie Lands Mitsubishi Deal for Philippines


Amalie Oil Co. has agreed to become Mitsubishis synthetic motor oil supplier in the Philippines, a deal projected to cover 6.6 million gallons annually by next year.

The arrangement was completed last month by the signing of a contract between Mitsubishi Motor Philippines Inc. and Amalies Philippine licensee, Pro Oil Corp. Amalie has already begun shipping oil for Mitsubishi dealerships on the archipelago. It expects by year-end to be supplying factory fill for Mitsubishis auto plant there.

The contract calls for Pro Oil to provide more than 6,000 gallons a month for the next six months, Amalie President and Chairman Harry J. Barkett told Lube Report. In a couple years, we should double that amount. This is a good deal for us.

He added that the parties are seeking to extend the agreement to other parts of Asia and to cover Mitsubishi Philippines needs for semi-synthetic motor oil, which would involve much larger volumes. Pro Oil is also seeking a similar contract with Toyota.

Barkett said the new contract supports Amalies conviction that Asia offers attractive growth opportunities. In January, the company became exclusive motor oil supplier for GeoMaxima, a growing Chinese energy company. The region now accounts for 5 percent of the blenders export volume but officials expect that amount to grow to 30 percent in the next few years.

Certainly we see a lot of potential for growth in Asia, Barkett said. Weve spent a lot of time in the last few years laying ground work to increase the amount of business we do there.

Amalie is one of the largest independent lubricant blenders in the world, with capacity of more than 250 million gallons. Formerly known as Petroleum Packers, it changed its name in 1999 after acquiring the Amalie motor oil brand from Sun Oil the year before. Its largest plant is in Tampa, Fla., but it will supply Mitsubishi from its Los Angeles distribution facility. It is using Group III base stock to make the synthetic oil that will be sold under the Mitsubishi brand.

Barkett said Amalie was able to obtain the business because it was more flexible than large oil companies.

Mitsubishi talked to a number of companies, he said. Part of it may be that this is not a large volume for the oil companies so theyre not as interested. But it just happens to be our bailiwick. This is the kind of thing we do.

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