Major oil refiner Idemitsu to double lubricant output in China
TOKYO, NNA - Major Japanese oil refiner Idemitsu Kosan Co. will build its second lubricant plant in China, doubling production capacity to meet growing demand for the oil used in automobiles and industrial equipment.
The plant in Huizhou in the southern province of Guangdong is scheduled for completion by March 2021, mainly supplying lubricant for car engines and transmissions, spokeswoman Rika Takimoto told NNA on Thursday but declined to comment on the investment sum.
Last September, the Japanese firm established a wholly owned subsidiary, Huizhou Idemitsu Lube Co., with capital of 260 million yuan ($37.6 million), according to a news release issued Wednesday.
The new plant, to be built on a 100,000-square-meter tract of land, will be capable of producing 120,000 kiloliters a year, the same as its first plant in the major northeastern city of Tianjin, which began operation in 2004, Takimoto said.
The Japanese refiner has seen annual growth of 1 percent in demand in China for lubricants used for autos, construction equipment and industrial applications such as metal processing, she said.
Idemitsu Lube (China) Co., the Tianjin plant operator, is running the facility at almost full capacity on steady demand and has expanded sales channels to Shanghai, Beijing, Guangzhou, Chongqing and Changchun, she said.
To further boost demand by developing locally suited products, Idemitsu opened a development center in Shanghai in October 2018, the release said. (NNA/Kyodo)