SK Lubricants acquires stake in Vietnam lube oil company
SEOUL, AJU - SK Lubricants, a lube base oil producer in South Korea, has secured a 49-percent stake in Mekon, a lubricant company in Vietnam, in a deal that would be used to expand its presence in Southeast Asia. This is the South Korean company's first investment in an overseas lube oil company.
An agreement to acquire the stake for 50 billion won ($42 million) was signed at Mekong's headquarters in Hanoi on February 7. SK Lubricants, affiliated with SK Innovation, would renovate and expand Mekong's storage facilities.
"With Mekong's production and sales infrastructure, our SK ZIC brand and product technology capabilities will be the basis for rapid growth in Vietnam’s high-end lubricant market and expansion of our business in the ASEAN market," SK Lubricants CEO Cha Gyu-tak said. SK's ZIC brand includes car engine oils and cleansers.
SK Lubricants said that its products would be distributed by Mekong, which is expected to strengthen the competitiveness of its sales network.