JXTG Energy opens lubricant sales company in Philippines
MANILA, NNA - JXTG Nippon Oil & Energy Corp., the Japanese oil wholesale giant, said Thursday its lubricant sales subsidiary in the Philippines has begun operations.
JXTG Nippon Oil and Energy established the subsidiary, JX Nippon Oil and Energy Philippines Corp., to replace its local sales agency with the aim of strengthening the company’s sales, facilitating the distribution of its products and expanding its distribution route as the local market has kept growing steadily.
“As the first step, we’re focusing on improving our customer service, and then will consider expanding our sales channel to regional areas as the next step,” a senior official of the new Philippine unit told NNA.
The subsidiary was established in the city of Makati, Metro Manila, in October 2019, with a capital of approximately 361 million yen ($3.29 million). JXTG Nippon Oil & Energy holds 80 percent of outstanding shares issued by the subsidiary, while the chairman and president of the company that had served as the local agency for JXTG Nippon own a 10 percent stake each.
The subsidiary has about 50 major clients, some 30 of which are Japanese subsidiary companies, according to the senior official.
In May 2016, JXTG Nippon set up its office in the Philippines to develop the local market by gathering information and through the agency.
Since the local lubricant market has grown by about 6 percent annually over the past five years and demand is expected to further expand, JXTG Nippon deemed it necessary to set up a local sales company to capitalize on the growth.
JXTG Nippon is expanding its lubricant business overseas. As of January 2020, the company has 10 production units and 31 sales bases in the field.
The official said the firm will step up its lubricant business mainly in Asia where demand is expected to continue growing.