Taiwan’s CPC Corp. has announced a joint venture with local company Excel Chemical Corp. and petrochemical logistic firm Uni-Shine Chemical Corp. to produce lubricants and solvents in Vietnam. With a total investment of TWD1.58 billion (USD49.8 million), this will be CPC’s first overseas lubricant plant.
The joint venture will have an annual production capacity of 32,000 kilolitres of lubricants and solvents. Commercial production is scheduled to begin in 2017, with a target revenue of about TWD800 million (USD25.2 million) per year. Each of the three partners will set up 15 tanks, each to hold 25,000 kilolitres, and a 30,000-ton shipping dock is also in the plans.
CPC will handle lubricant blending and packaging, as well as sales, and will own a 40% stake in the joint venture, while Excel and Uni-Shine will each hold 30%.
The chairman of CPC, Lin Sheng-chung, stated that the joint venture will sell lubricants under the CPC and Mirage brands. It will start in the Vietnamese market, gradually expanding to the Association of Southeast Asian Nations (ASEAN).
Domestically, CPC has completed the first-stage of its lube blending capacity expansion in Chiayi, southern Taiwan, following the closure of the CPC Shell Lubricants Co., Ltd. plant last December.
Excel is the largest liquefied petroleum gas distributor in Vietnam, which has established sales channels.
Uni-Shine specialises in chemical management and storage. It operates two chemical storage facilities in Taiwan and two in China.
State-owned CPC is a leading supplier of lubricants in Taiwan. It generates about TWD4 billion (USD126 million) in annual revenues.