Overseas lubes companies are strengthening their position in China
US-based Addivant, an additives producer, and Indonesian petrochemicals giant Pertamina are building new facilities to gain access to the fast-growing Chinese lubricants market.
Addivant will launch a new "Customer Formulation Centre" in Shandong province, to meet the various requirements of local firms. According to Addivant CEO Peter Smith, the "expansion into China makes tremendous sense given the region's position in new polymer production and the fast growth of its downstream processing industries."
The company, headquartered in Conneticut, will use the site to complement existing centres in North America, Europe and the Middle East and will be key to delivering innovative additive solutions to local industries.
Meanwhile, Pertamina has committed to spending 1.3tn rupees ($114m) to finance two new high-quality lubes and grease plants. Upon completion, the two facilities will be among the most state-of-the-art in South-east Asia.
The state-owned major is also in the process of acquiring a plant in Thailand and partnering with a Chinese lubricants company as part of an aggressive marketing campaign focussed on China.