The Chinese lubes firm reports an 11% rise in sales.
Since partnering with Malaysian oil and gas giant Petronas in June 2013, Yuchai Lubes Co has gone from strength to strength. At the company's 2014 AGM, company general manager Li Qibang claimed the producer had been able to recover healthy sales and is now moving towards profitability.
In the second half of 2013, Yuchai sold over 68,000 tons of lubricants products - an 11% increase from the same period a year earlier. Li believes an established network of local dealers and the added financial backing of Petronas helped it expand in more islolated inland markets, as well as developed areas.
Yuchai Petronas Chairman, Xie Yuqiang, attributed the success of the partnership to clearly defined goals and a mutual understanding of each partners' role. Xie believes that developing new technology, strengthening regional teams and staying responsive to changes in the market will be the key to sustaining growth and attaining profitability.
The joint venture has forecast sales of 82,000 tons in the same period in 2014, which should generate around 3bn yuan ($496m) in revenue.