Singapore-based independent lubricant manufacturer United Global is acquiring a lubricant blending facility in Indonesia owned by PT. Pacific Lubritama Indonesia.
Located on 41,600 m2 in Banten Province, 95 km accessible by expressway from the Indonesian capital Jakarta, the integrated jetty/lube oil blending plant consists of 14 base oil tanks, semi-automatic blending plant with six bulk additive tanks, filling systems for bulk tankers, drums, pails and small packs, a well-equipped laboratory and jetty access. The plant has the capacity to produce 150,000 metric tonnes of finished lubricants annually.
In 2003, United Global helped with the construction of the Pacific Lubritama lube oil blending plant, on the condition that the raw materials, such as base oils and additives, would be procured from United Global. United Global’s other core business is the trading of base oils, additives and lubricants. United Global has a distribution network in more than 30 countries.
Last year, United Global launched its initial public offering (IPO) on the secondary board, called the Catalist board, of the Singapore Exchange (SGX). The net proceeds from the IPO, amounting to about USD 9.2 million (USD 6.81 million), will be used for business expansion and general working capital, Executive Director and CEO Jacky Tan said at the time of the listing.
United Global has a wholly owned subsidiary, United Oil Company Pte Ltd, a lubricants manufacturer headquartered in Singapore. Established in 1999, United Oil manufactures a wide range of lubricants under its own house brands such as United Oil, U Star Lube, Bell1 and HydroPure, at its facility in Tuas. It also toll manufactures lubricants for other companies. The company’s annual production capacity is 44,000 metric tonnes.
The acquisition cost for a 95% stake in Pacific Lubritama is SGD18.2 million (USD13 million), which is being funded from the IPO proceeds and a share placement.
Tan is married to the executive director of Pacific Lubritama Indonesia, Ety Wiranto, who together with her siblings own the company.