Petron Corporation, the largest oil company in the Philippines, sees huge potential in Malaysia’s lubricants market. The company entered the Malaysian market in 2012 when it bought Esso Malaysia Berhad (EMB) and its two subsidiaries for about USD 600 million. EMB’s operations included a refinery located in Port Dickson on the Malaysian west coast with a capacity of 88,000 barrels per day, seven fuel distribution terminals and a network of about 560 retail stations, of which 420 were company-owned.
Choong Kum Choy, head of commercial business, said Petron’s lubricant business in Malaysia started generating profits during its first year of operation.
“In fact, our lubricant business expanded by eight per cent in the first nine months of last year compared to the same period of 2014,” he told Bernama during his recent visit to the Malaysian national news agency’s headquarters in Kuala Lumpur.
Petron gained an immediate competitive edge with its large network of service stations which came with the acquisition, providing the newbie company immediate customer exposure and visibility.
“Brand familiarity and acceptance is fundamental to how successful one can be in this market,” said Choong.
Despite being a new player in the Malaysian market, Petron has vast experience being a major lubricant supplier in the Philippines, he added.
“We have gone through the rigours of product development over more than 80 years to ensure our premium lubricants meet the exacting standards of major original equipment manufacturers,” he said.