Malaysian lubes distributor, UMW, is set for a healthy 2012 while Petronas ties the knot with Perodua.
After signing a deal with Repsol in June last year, the Lubricants division of the Malaysian-based auto-to-engineering UMW group has been signficantly boosted, with the lubes unit already boasting 300 distributors across the country. The company is forecasting sales of around RM50m ($16m) for 2012.
The distribution contract with Spain's oil producer gives UMW exclusive distribution rights for Repsol's auto, motorcycle and industrial lubes not just in Malaysia, but also across Singapore, Brunei, Papua New Guinea, Myanmar and China.
The effects on UMW's profitability have already been significant, not just in revenues, but in growth of presence across the region. The company now expects its network to increase by a further 200 outlets, including Sabah and Sarawak by the end of the year.
Meanwhile the domestic arm of the country's second largest lubes producer, Petronas Dagangan Berhad (PDB has inked a five-year OEM deal with Malaysia's automaker, Perodua. The contract is worth RM225 ($73m) and takes Petronas another step to fulfilling the company's ambition to take the dominant share of the domestic market by 2015 - a position currently held by Shell.