Japans Idemitsu Kosan announced last week it had opened a lubricant manufacturing and sales company in Haiphong City, Vietnam.
The new lubricant blending facility, completed in December of last year, has a manufacturing capacity of approximately 35 million litres of lubricants per year and covers 60,000 square metres.
The new Idemitsu Lube Vietnam has a total chartered capital sum of just under $32 million to produce engine oil for motorcycles and automobiles, general industrial lubricants and related products in Haiphongs Dinh Vu-Cat Hai Economic Zone. A company official said that 40 per cent of its products would be exported overseas.
Until now, lubricants sold by Idemitsu Kosan in Vietnam were produced by local third party toll blenders.
With a population of roughly 90 million, of which more than 60 percent is under the age of 30, Vietnam has been enjoying a high economic growth of approximately 6 percent annually", Idemitsu Kosan said in a news release.
Vietnam's 2012 overall lube demand was 263.0 KT and the lubricant market share was held by Castrol Vietnam, 29%, Petrolimex, 18%, Shell, 12%, Total, 6%, Caltex, 4%, Mekong, 2% and others totaling 29%, according to data advised to OEM/Lube News by George Morvey, Industry Manager, Kline's Energy Practice.
Founded in 1911, Idemitsu Kosan is one of Japans largest economic groups and specialises in petrochemistry, lubricating oil mixing, mineral resources and energy exploiting.
