Tokyo, Japan-based TonenGeneral Sekiyu K.K. announced that it has established a lubricants business company through its subsidiary EMG Marketing Godo Kaisha, also based in Tokyo, whose main business is Lubricants manufacture, sales, import/export and related business.

TonenGeneral will merge with its lubricants division, EMG, which has a paid-in capital of ¥350 (U$3) million, with commencement of operations anticipated to be April 1, 2017.

TonenGeneral is proceeding to complete its previously announced business integration with the JX Group on April 1, 2017.

"After the business integration, the lubricants brands used by the two companies will continue to be used for some time, and the two companies plan to discuss future business development. It has been determined that the establishment of an independent company is appropriate from a standpoint of managing brands and other considerations," said the statement.

TonenGeneral is in discussion with ExxonMobil regarding lubricants business model in Japan post April 1, 2017. Both TonenGeneral and ExxonMobil place the highest value on their past and current close collaboration, and remain committed to the continued presence of Mobil brand in Japan, said the companies.

"There will be no change in the relationship between the TonenGeneral Group and its lubricants business partners, and we will work toward the further development of our relationships of trust built up over many years," added the company.

The merger between JX Holdings, who also markets its own brand of Eneos lubricants, and TonenGeneral was approved by the shareholders on December 21, 2016.