PT Pertamina Lubricants, the downstream unit of Indonesia's state energy company PT Pertamina, is in the final stage of acquiring Amaco Production Co. Ltd, a lubricants blender in Bangkok, Thailand. The value of the transaction was not disclosed.
Amaco Production, one of the leading lubricants producers in Thailand, produces lubricants under the AMCO brand. It owns a blending plant with a production capacity of 45,000 metric tons of lubricants per year per single shift. The plant is equipped with base oil tank farm of 1,250 MT capacity and 14 mixer blending tanks total capacity of 225 MT which could blend 14 products at the same time.
Andria Nusa, Yogyakartas director of operations for Pertamina Lubricants said last Monday, We will complete the process by the end of the year. It would be the first for Pertamina Lubricants, he said, adding that the company is pursuing inorganic growth. The acquisition will give us access to market opportunities in Thailand. We also plan to use Thailand as a base for expansion in Indochina.
Looking ahead, Andria said Pertamina Lubricants will continue to seek acquisition opportunities overseas, particularly in China. We have been looking and sizing up several mid-sized lubricant producers in China, said Andria, explaining that acquisitions helped Pertamina Lubricants to quickly establish a local presence.
Andria said that his company has benefited greatly from Indonesian consumer loyalty to domestic-made products. In Indonesia, if theres a domestic-made product of similar price and quality to that of a foreign-made product, consumers will choose the former, he said.
Pertamina Lubricants is targeting 10 percent growth in revenue, Andria said. Last year, our revenue was around Rp 10 trillion (US$850 million). This year, the forecast was Rp 11 trillion.
Amaco produces primarily automotive type lubricants, including its AMCO SPEEDMAX (PCMO), AMCO POWERTEC (HDDEO), AMCO GEAR, AMCO ATF, AMCO OUTBOARD TCW 3 and its 4T AMCO TOP SPEED.
In a separate press release the same day, PT Pertamina Lubricants said it aims to be among the 15 largest lubricant producers in the world in 2018 by strengthening domination in the domestic market and expansion abroad.
Pertamina Lubricants Operation Director Andria Nusa, mentioned above, said that currently, Pertamina dominated 60 percent of the domestic market. Compared to other countries, Pertamina Lubricants is the only company that was able to dominate more than 50 percent of market share. Besides, Pertamina Lubricants had been able to export to 24 countries in five continents.
Domestic and overseas makers positive receptions to Pertamina Lubricants products are proof that the quality of our lubricants earn customers trust as one of the best in the world. Seeing this trend, we believe that next year, Pertamina Lubricants can enter into 20 largest lubricant companies in the world and then were optimistic that we can enter into top 15 companies in 2018, Andria said.
Andria explained that to achieve that aspiration, Pertamina Lubricants aimed to have a total market share of 1.35 percent in the global market in 2015 and then jump to 1.82 percent with the total sales of 1 million KL annually. This can be achieved by strengthening presence in the domestic market and increasing aggressiveness in expanding abroad.
To strengthen penetration in overseas markets, Pertamina will focus on the Chinese market, the mining sector in Australia, the shipping sector in Middle East and building strong global network. Special for penetrating the Indo-China market, Pertamina Lubricants will operate a new production plant in Thailand.
The next step, Pertamina Lubricants will achieve sustainable market in Europe and build larger market network in the international shipping sector, he revealed.
