Singapore, July 28th, 2011 - Sinopec Lubricants, a subsidiary of the world's second largest oil refiner, will build a US$91m lubricant plant in Singapore.
The facility at Tuas will be China Petroleum and Chemical Corporation's (Sinopec) first lubricant plant outside of China and is part of its efforts to establish its brand presence in Southeast Asia.
Sinopec may only be behind Exxon Mobil in the business globally but the Chinese company still has a long way to go in terms of brand recognition outside of the mainland.
Sinopec hopes that its lubricant plant in Tuas will help increase its sales in Australia, New Zealand and Southeast Asia.
The company said it will now also reap some measure of savings as it is now based closer to customers in these places.
Pei Wen Jun, general manager of Sinopec Lubricants Singapore, said: "Well, cost savings are one factor but the main point of being here is to provide a higher level of efficiency to our customers based here."
The company will begin operating the lubricant plant with a initial production capacity of 100,000 metric tons annually. The lubricant is destined for customers in the marine and automobile industries.
Sinopec said it expects that production may increase 50 per cent to 150,000 metric tons within three to five years of operation.
It is also open to the possibility of replicating its investment strategy around the region.
Mr Pei said: "We will track what is needed in the market and see how it develops to determine if we will make more investments in Southeast Asia."
While the Singapore plant will account for only five per cent of its total lubricant production, it sees the republic as a crucial step in its broader strategy to internationalise its brand presence.
The lubricant plant in Tuas is set to hire up to 80 new staff and will function as a regional hub, engaging in production, servicing and logistics for a variety of customers including those in the automobile and marine industries. - CNA
The facility at Tuas will be China Petroleum and Chemical Corporation's (Sinopec) first lubricant plant outside of China and is part of its efforts to establish its brand presence in Southeast Asia.
Sinopec may only be behind Exxon Mobil in the business globally but the Chinese company still has a long way to go in terms of brand recognition outside of the mainland.
Sinopec hopes that its lubricant plant in Tuas will help increase its sales in Australia, New Zealand and Southeast Asia.
The company said it will now also reap some measure of savings as it is now based closer to customers in these places.
Pei Wen Jun, general manager of Sinopec Lubricants Singapore, said: "Well, cost savings are one factor but the main point of being here is to provide a higher level of efficiency to our customers based here."
The company will begin operating the lubricant plant with a initial production capacity of 100,000 metric tons annually. The lubricant is destined for customers in the marine and automobile industries.
Sinopec said it expects that production may increase 50 per cent to 150,000 metric tons within three to five years of operation.
It is also open to the possibility of replicating its investment strategy around the region.
Mr Pei said: "We will track what is needed in the market and see how it develops to determine if we will make more investments in Southeast Asia."
While the Singapore plant will account for only five per cent of its total lubricant production, it sees the republic as a crucial step in its broader strategy to internationalise its brand presence.
The lubricant plant in Tuas is set to hire up to 80 new staff and will function as a regional hub, engaging in production, servicing and logistics for a variety of customers including those in the automobile and marine industries. - CNA
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