A third South Korean refiner is preparing to join the base oil business. GS Caltex is finalizing plans to build a 15,000-barrel-per-day plant at its oil refinery in Yeosu, an official told Lube Report this week. The company aims to begin operating the plant by the end of 2007.
Known until March as LG Caltex Oil, GS Caltex blends and markets lubricants but currently does not produce base oil. It has had ample opportunity to view the success of fellow South Korean companies, SK Corp. and S-Oil Corp., from whom it buys base oils. The desire to lessen its dependence on them is a factor in the plan to build its own plant, Senior Manager S.H. Lee said Monday.
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