G. S. Ravi, CEO of China’s largest additive maker, Tianhe Chemicals, said the company is setting up a lubricant additive blending plant in Dubai, United Arab Emirates (UAE), which will be followed by additive component manufacturing later, as well as an additive blending plant in Singapore.
“Looking at the market and the demands we are facing from our customers, we decided that we would like to expand in Dubai and Singapore,” Ravi said.
In phase one, Tianhe Chemicals will initially produce 30,000 tonnes in Dubai, with plans to expand further within two years.
“We are in a very advanced stage and plan to start by February 2016,” Ravi said.
The additive blending plant will produce marine lubricant additive packages, passenger car motor oil and heavy-duty diesel engine oil additive packages, as well as specialty additive packages.
Tianhe Chemicals also plans to establish a lube additive blending plant in Singapore.
“As far as Singapore is concerned, we have already identified a manufacturer in Singapore,” he said. The Singapore additive blending plant will have similar product profiles as Dubai, but will have a higher capacity, starting with 40,000-45,000 tonnes, which will be expanded to 60,000 tonnes after three years. The company plans to ship in bulk from Singapore to other markets.
“This gives security of supply to our global customers,” Ravi said.
Tianhe Chemicals will continue to produce additive components primarily in China, he said, but the company plans to start limited component production in other parts of the world as well.