Petronas expands in China

May 1, 2017

Petronas Lubricants International (PLI) recently launched the newly expanded lubricant blending plant in the Weifang Economic Development Zone in Shandong, China, to meet the market’s growing demand for premium lubricant products and high-quality services.

The comprehensive expansion project, which was carried out in phases, saw the upgrade of the plant’s production capacity, production lines and storage facilities, bolstering the company’s ability to serve the booming Chinese market.

Petronas president and group CEO Wan Zulkiflee Wan Ariffin, who officiated the new plant said: “The second phase expansion at our Shandong plant adds much-needed production capacity that will help us meet the soaring demand for our products.”

Naturally, this will also infuse our marketing and sales operations with a major boost of new energy to pull away from the pack. This strategic expansion of our footprint in China reflects the great importance we attach to our local customers here as well as our confidence in Petronas’ prospects for future growth in the Chinese market.”

The plant’s officiating ceremony was also attended by Petronas executive vice president and CEO of the downstream business, Md Arif Mahmood, Petronas Lubricants International (PLI) group CEO, Giuseppe D’Arrigo and PLI head of regional business (Greater China), Mark Gau.

In order to optimise services and offer customers a complete range of premium solutions, Petronas has invested RMB600 million (RM384 million) to expand the plant’s footprint to 21,000 square metres to now include an automated, hi-tech lubricant blending line as well as additional storage tanks.

The plant’s annual output is expected to increase from 45,000 to 150,000 tonnes, covering a wide range of automotive lubricants, anti-freeze liquids, industrial lubricants and greases.

The expansion also saw an upgrade of the plant’s warehouse facilities to enhance capabilities for storage, transportation, local distribution and overseas export.

Improving the capabilities of the Shandong Plant not only allows for increased production capacity to satiate consumer demands, it is also a testament to Petronas’ commitment to the rapidly developing Chinese market, said a statement issued by Petronas Lubricants International.

Aside from lubricants production, Petronas is also actively growing its liquefied natural gas (LNG) business while looking to expand the LNG volume supply to its existing buyers in the country.