Malaysias national petroleum company last month joined the flock of companies hitching themselves to Chinas economic engine. Petronas formed a subsidiary in the southeastern city of Shenzhen to begin selling lubricants and other oil products.
In terms of lubricants, a spokeswoman said Petronas Marketing China Co. will focus on sales of engine oils for passenger cars and motorcycles.
Petronas already had a toehold in China, thanks to a subsidiary selling petroleum products in Hong Kong and a liquefied natural gas joint venture in Jiangsu province. But the company indicated in a June 25 announcement that it sees much more opportunity in a country that is now the worlds biggest source of economic growth.
Chinas economy grew just over 9 percent in 2003 and now accounts for one-sixth of global economic growth. According to some forecasts, the sales revenue from the countrys lube market is expected to rise at an annual rate of 10 percent for the next few years.
Shenzhen is located near the Chinese coast, just outside the Hong Kong Special Administrative Region.
Shenzhen is a wonderful city with excellent infrastructure and an investor-friendly environment conducive to doing business, said Clement Ooi, general manager and chief executive of Petronas Marketing China. It is also a good gateway to other parts of this great country. The company said the new subsidiary will target selected markets.
Based in the Malaysian capital of Kuala Lumpur, Petronas owns South African oil company Engen, as well as a subsidiary operating a chain of service stations in Cambodia.