PETRONAS Lubricants International Sdn Bhd (PLI), the marketing arm of Petroliam Nasional Bhd (PETRONAS) has increased its stake to 50% in its Chinese joint venture, Yuchai PETRONAS Lubricants Co Ltd (YPLC). PLI said in a statement that it had recently acquired an additional 12% share in Yuchai PETRONAS Lubricants Co, making it an equal partnership between PLI and Yuchai Lube Company.

PLI entered into the joint-venture agreement with Yuchai Group to form YCPL in 2013, with an initial share of 38%.

PLI said the increase in share ownership would allow it to achieve sustainable growth and profitability in China’s lubricants market by 2020 and introduce new technologies, diversify its product portfolio and strengthen regional teams.

“China is PETRONAS’ fastest growing lubricants market where in 2015 alone,” said PLI managing director and group chief executive officer Giuseppe D’Arrigo.

“PLI sold more than 100 million litres of motor oil. We believe China has great potential and opportunities to be the worldwide leader in automotive engineering, manufacturing and technology in the future.”

PLI said YCPL recorded steady growth at an average rate of 10% within two years. It currently ranks among the world's top 15 lubricants company.

In 2015, the JV entity established the Guangxi Nanning Yuchai PETRONAS Lube Co Ltd Research & Development (R&D) Centre, located in Guangxi province’s Nanning Science and Technology Industrial Park. It also serves as PLI’s global satellite Research and Technology (R&T) centre, particularly for commercial diesel engine lubricants. It was conceptualized and built to complement Yuchai Group’s R&D centre for diesel engine in Nanning.

“PLI has been a valuable partner to us,” said YPLC chairman Xie Yuqiang. “The new R&D centre, Yuchai’s advanced engine research and technology capabilities, as well as PETRONAS’ expertise in lubricants development is a winning combination for us to sustain growth, attain profitability and grow customer confidence in our products and services.”

“We are looking forward to more successes and breakthroughs in 2016 and beyond. We are confident that together with PLI, we will attain even greater profitability and achieve market leadership soon,” Xie added.