Malaysian producer increases its holding in Yuchai lubricants JV.
Yuchai Headquarters Image: Yuchai Lubricants
Petronas Lubricants International has completed its acquisition of a 12% stake in China's Yuchai Petronas Lubricants, bringing its total ownership up to 50%. The equal partnership will allow the firm to achieve sustainable growth and profitability in a Petronas' fastest-growing market.
The new structure will also promote technology sharing and help the joint venture diversify its existing product line. Petronas completed work on its first research and development centre in April last year, aimed at bringing state-of-the-art technologies to local clients.
Petronas and Yuchai Group first entered into a joint venture in 2013, when the former took a share of 38% in the newly-formed Yuchai Lubricants. Since then, the venture has been hugely profitable for the Malaysian state-owned giant.
In 2014, the firm generated almost $500m in revenues and has continued to post steady growth in the following years. PLI sold more than 100m litres of lubricants products in China alone last year, making it one of the firm's most important markets.
2016 will see the joint venture focus on improving its diesel engine oils to CJ4 level and above in a bid to stay on top of increasingly sophisticated vehicle technologies and stringent emissions regulations.