Lubricants

Total to build lube blending plant in Russia

Total to build lube blending plant in Russia
Photo courtesy of Total Oil.

Total Vostok LLC, announced the construction of a lubricant blending plant in in the Kaluga region in Russia. Total Vostok LLC is a subsidiary of the French oil and gas major Total SA.

With an estimated total investment of USD50 million, Fabien Voisin, CEO of Total Vostok, said that the plant’s initial capacity will be 40,000 tonnes per year, which can be boosted up to 75,000 tonnes.

The plant will produce a wide range of lubricants for the automotive industry and for other industries, including iron and steel, mining, etc.

On 17 Oct. 2016, Anatoly Artamonov, governor of the Kaluga Region, and Voisin signed a cooperation agreement to invest in and construct the lube blending plant, which is scheduled to be completed by 2018.

“The factory construction is completely in line with Russia’s strategy to increase localisation and to reduce dependence on imports. The factory will create 50 new jobs,” a company statement said.

“If the deal goes well, then this capacity may be increased to 75,000 tonnes a year,” Voisin said. He also said that the plant’s output will be sold primarily in the domestic market, but he did not rule out the possibility of exports to Belarus and Central Asian countries.

Russia is the fifth largest lubricants market in the world, and thanks to this project, “Total expects to accelerate its development, strengthening its presence in Russia and seeking further growth,” said Patrick Pouyanné, president and CEO of Total SA.

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