LukOil Expands Perm Lube Plant


Russian oil giant OAO LukOil said last week that it has completed the first phase of an eight-year project to double the capacity of its largest lubricant blending and packaging plant. The plant, located in Perm, Russia, has a new automated 3,000-ton storage facility.

The Perm plant, part of a refining complex, currently has capacity to package 50,000 tons of lubes per year in cans ranging from 1 to 5 liters. The company said it plans to double that capacity before 2015, in order to accommodate growing demand for LukOils automotive lubricants. Management said sales are rising both because of the popularity of the companys products and because of growth in the number of vehicles in Russia.

The next phase of the expansion calls for installation of equipment to blowmold plastic containers, as well as filling lines, a tank farm and a pumping station. It is scheduled to be commissioned early next year. After that the company plans to add blending capacity. The company did not disclose the cost of the project.

LukOil, which is based in Moscow, said the expansion will do more than simply increase capacity. By combining the processes of packaging, packing, storage and shipment in a single production unit, it said, the project will also help prevent counterfeit products from appearing under its brands.

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