PETRONAS Lubricants now an equal partner in Chinese joint venture company YCPL
PETRONAS Lubricants International (PLI) recently completed the acquisition of an additional 12% share in Yuchai PETRONAS Lubricants Co. Ltd. (YCPL), making it an equal partnership between PLI and Yuchai Lube Company, a subsidiary of the Yuchai Group.
The increase of share ownership will allow PLI to achieve sustainable growth and profitability in China’s lubricants market by 2020 and introduce new technologies, diversify its product portfolio and strengthen regional teams, the company said.
“China is PETRONAS’ fastest growing lubricants market where in 2015 alone, PLI sold more than 100 million litres of motor oil. We believe China has great potential and opportunities to be the worldwide leader in automotive engineering, manufacturing and technology in the future,” said PLI Managing Director and Group Chief Executive Officer, Giuseppe D’Arrigo.
“Together with the Yuchai Group, we believe that our partnership will bring end-to-end value not just to the lubricants industry, but also to our network of distributors and the end customers. We are confident that through this joint venture, we can contribute progressively and greatly advance the development of diesel engine technology in China,” he added.
PETRONAS’ collaboration with the Yuchai Group started when PLI entered into a joint-venture agreement to form the Yuchai PETRONAS Lubricants Co Ltd in 2013, with an initial share of 38%. The company recorded healthy and steady growth at an average rate of 10% within two years.
In 2015, the joint venture entity successfully established the Guangxi Nanning Yuchai PETRONAS Lube Co. Ltd Research & Development (R&D) Centre. The centre, located in Guangxi province’s Nanning Science and Technology Industrial Park, also serves as PLI’s global satellite Research and Technology (R&T) centre, particularly for commercial diesel engine lubricants. It was conceptualised and built to complement Yuchai Group’s Research and Development (R&D) Centre for diesel engine in Nanning, leveraging on PLI’s strong legacy in lubricants technology and its technical expertise as a technology partner in diesel engine and diesel engine lubricant design and development. The centre covers more than 1,000 square metres with 30 test installations, capable of carrying out 40 kinds of physicochemical and tribological tests. It adopts and is benchmarked against ASTM International standards.
“PLI has been a valuable partner to us. The new R&D Centre, Yuchai’s advanced engine research and technology capabilities, as well as PETRONAS’ expertise in lubricants development is a winning combination for us to sustain growth, attain profitability and grow customer confidence in our products and services,” said YCPL Chairman Xie Yuqiang.
In addition, PLI’s international reach and experience in working with worldwide leading original equipment manufacturers (OEM) have also helped YCPL renew its technological approach to co-designing engines and engine oil for markets worldwide.
“We are looking forward to more successes and breakthroughs in 2016 and beyond. We are confident that together with PLI, we will attain even greater profitability and achieve market leadership soon,” Xie said.
“The joint venture firm’s focus for 2016 is to further expand its product offering with a robust portfolio that caters to the unique demands of China’s industrial oil sector. Our efforts in research and development will also be ramped up to deliver better quality diesel engine oil (level CJ4 and above),” said Giuseppe Pedretti, PLI’s chief of Commercial.