Lub Dagangan and PTP sign USD 14 million lube supply agreement
Lub Dagangan Sdn Bhd (LDSB), a wholly-owned subsidiary of PETRONAS Dagangan Berhad (PDB) has signed an eight-year contract with Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) to supply a wide range of lubricants to PTP, the single largest port operator in Malaysia.
The deal to supply industrial and marine lubricants to PTP is worth MYR 51 million (USD 14 million).
“Today’s signing ceremony is indeed a milestone for both PETRONAS and PTP as it marks the beginning of a long-term partnership between two industry leaders,” said Zubair Abdul Razak, the CEO of LDSB, at the signing ceremony on 22 April.
LDSB, which is a 100% owned subsidiary of PDB, is responsible for the sales and marketing activities of PETRONAS lubricants in Malaysia. The lubricants business is one of the four core businesses of PDB, with revenues of more than MYR 589 million (USD 162 million) for the financial year ending 31 December 2014.
“The inking of this agreement will further support PTP’s operational growth and complement our improvement initiatives, especially in areas of efficiency, safe lubricating methods, better stock management and understanding engines wear & tear from lubricant analysis. We are pleased to secure the deal with LDSB as we can now move from the traditional ‘Client – Supplier’ arrangement to a ‘Partnership’ model that goes beyond just supplying products to listening and understanding the client’s needs and making provision of value add services and support equipment,” said Glen Hilton, PTP CEO.