Valvoline last Wednesday announced plans to build its first plant in China. With expected investment of approximately $70 million (RMB 443 million), it will also represent Valvoline’s single largest blending plant investment worldwide.
“Capturing opportunities for volume and premium product growth in key international markets is an essential strategy for the company,” said Sam Mitchell, chief executive officer. “This new plant is an investment in China and its rapidly growing demand for high-quality lubricants and coolants to meet the evolving needs of both passenger car and heavy-duty customers.”
Strategically located on approximately 20 acres (120 Mu) in Zhangjiagang within the Jiangsu province, the new 80,000-square-meter Valvoline plant is expected to begin production by the end of calendar 2020 with an annual production capacity in excess of 30 million gallons (115 million liters) of lubricants.
“This is very exciting news for our customers and partners in China,” said Craig Moughler, senior vice president, International and Product Supply. “This investment demonstrates our commitment to the growth and success of our distributors and OEM customers through a more efficient and effective local supply chain and faster-to-market new products and packaging.”
Established in 1866, Valvoline, which has sales in more than 140 countries and a heritage that spans over 150 years, ranks as the No. 3 passenger car motor oil brand in the DIY market by volume and the No. 2 quick-lube chain by number of stores in the United States. The company operates and franchises more than 1,100 Valvoline Instant Oil Change centers in the United States.