Petronas announces lubricant tie-up with sports-car maker Lotus

With the aim of becoming one of the top five lubricant players by 2016, Petroliam Nasional Bhd (Petronas) will unveil a strategic tie-up with British sports-car maker Group Lotus at the Frankfurt Motor Show in Germany which opens on September 15. OEM alliances can help Petronas achieve its global target as well as become the number one lubricant company in Malaysia, executives of Petronas Dagangan Bhd (PDB) and Petronas Lubricants International (PLI) said. State-owned Petronas is just outside the world’s top 10 in the segment, and is the second largest lubricant player in Malaysia, which consumes 250 million liters of lubricants a year. Izuddin Husaini Mohd Yusoff, PDB senior general manager of retail business, said OEMs are central to Petronas’ lubricants business as they offer greater access to the more lucrative service fill market, where margins are better than factory fill. “We want to be a top notch lubricant giant,” Izuddin said. Its acquisition of Italy’s FL Selenia in 2008 has paved the way for Petronas to be a global player. FL Selenia was later consolidated into Petronas Lubricants International (PLI). “OEMs are the driver of new technology in the (lubricant) market,” said Aldino Bellazzini, PLI chief executive officer. Bellazzini said Petronas will supply all the lubricants and fluid needs of Lotus, which is owned by Proton Holdings Bhd, under the partnership. It will also support Lotus in the latter’s motorsport activities, except for Formula 1. After a long-running dispute, Renault will get the sole right to use the “Team Lotus” name in next year’s F1 race. Business Times also reported that Petronas has approved a MYR 209 million (US$68.3 million) budget to set up a new research and development center at its lubricant manufacturing facility in Italy. The facility, which is expected to be operational by 2015, will be one of Europe’s largest lube R&D center, the local paper said. (September 12, 2011)