Page 39 - Fuels & Lubes International 2014 - Q2

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FUELS & LUBES INTERNATIONAL Volume 20 Issue 2
some of its own base oil supply as well as
acquiring some from the open market sets PLI
apart. Lube companies that do not own their
base oil supply are left completely vulnerable
to the market in times of shortage.
The commercial side of the lubricants market
is growing the most in Asia, specifically in China
and in India. China, as well as India, is tighten-
ing its vehicle and fuel emissions requirements to
try to combat air pollution, which would require
higher quality lubricants and base oils.
PLI is also investing USD50 million
in a new research and development facility in
Turin, Italy, to house its technology team and
drive technology initiatives across the regions.
Although construction has not yet started,
Holthusen says that by the end of 2015, the
center will be operational.
The facility in Turin reinforces PLI’s commit-
ment to be at the top end of technology in the lu-
bricants industry. Since many automotive players
continue to base their development centers
in Europe, locating this key support function in
Turin allows PLI to be near its main customers
and their respective R&D departments, facili-
tating stronger collaborative work to be done
between PLI and its automotive partners.
According to Holthusen, the USD50 million
centre, “will be the nucleus of our technology
and development work and reach out to our
global network of manufacturing facilities.”
Holthusen recently hired a new director
of R&D, Andy Holmes, who worked for 20 years
at Shell.
PLI’s regional offices are complemented with
an extensive manufacturing and distribution
network that consists of a dozen lube blending
and packaging plants across Malaysia, China,
Italy, Spain, Belgium, Brazil, Argentina, South
Africa, Sudan and soon—India. PLI is building
a new blending plant, its twelfth, in Mumbai,
India, and investing USD50 million.
“As part of our growth agenda, we need
to secure manufacturing facilities in strategic
locations to enhance our supply and delivery
setup. Where we need one but don’t have one
or can’t buy one, we are prepared to build one
ourselves. This means end-to-end greenfield
project management by our Manufacturing and
Engineering unit, who at the same time must
uphold industry standards at all our plants for
optimum performances,” he says.
Holthusen says PLI’s goal is to be a truly
international lubricants business. PLI wants to
be known for its technology and global foot-
print. Holthusen points out that PLI is a “one
hundred percent lubricant company” and does
not have to worry about a retail or gas business.
“That type of focus,” he says, “is something
that big names... do not have.”
As COO, Holthusen oversees the key sup-
porting functions to the business, including
technology, manufacturing and engineering,
key account management and marketing.
Centralizing these functions under newly-
formed teams has kept Holthusen busy.
“As part of a revitalized structure, the key
supporting functions to PLI’s business are
now centrally located at our Kuala Lumpur
headquarters, except for technology which
resides in our research and development centre
in Turin,” says Holthusen.
“Centrally-driven strategies in each of these
functions will facilitate our overall business
strategy of enhancing PETRONAS Lubricants
International’s global footprint,” he says.
In its quest to grow its business further,
PLI is careful not to lose focus on its core
business values, which are emphasized in the
COO’s portfolio.
“As a manufacturer as well as a marketer
of lubricants, we view the entire chain from
development to selling of our products as a
seamless process that must generate value to
the business,” he says.
His top priorities as COO include globalizing
and streamlining R&D, serving global customers
as well as automotive manufacturers, globalizing
marketing and harmonizing production.
Holthusen says that PLI is beginning to run all
of its lube blending plants as one production
system even though each comes with its own
legacy. The new R&D facility will be located near
automotive customers. Those are two examples
that reflect the on-going harmonization that
Holthusen has embarked on.
PLI is currently ranked number 14 globally
by consulting firm Kline & Company, with
Shell in the top position. One of his goals for the
next five years is to bring PLI into the top 10 of
the “magic circle.”
“With an organic scenario, I don’t think you
can jump four notches in five years,” he admits.
The inorganic growth begins with the
USD100 million invested in the new blending
plant and the R&D facility. Besides those
investments, Holthusen says that PLI needs to
increase the capacity of its current blending
plants, win new customers and increase
business with current customers.
Although PLI still has much to accomplish,
Holthusen is optimistic. Of his job, he says,
“It’s a very, very exciting environment I’ve
gotten myself into.” He feels that the lubricants
business is coming into its own, no longer just
an appendage of the oil industry.
“It’s a good business to be in to show that
you are a truly global company,” he adds.
One way for PLI to showcase its competence
is with its long-standing relationship with
Formula One. PETRONAS has been involved
with Formula One for 14 years and is now
working with Mercedes Benz on new Formula
One engines. Formula One continues to be
a major way for PLI to promote its brands.
The brand “Syntium” was developed by some of
the same people who worked on the Mercedes
Benz team for Formula One, using racing
expertise to develop a product for passenger
cars. Holthusen believes that PLI needs to
explore this crossover of expertise more often.
Holthusen notes that PLI makes itself unique
in its technology by defining specific formula-
tions for its additives. Furthermore, they do
not sell their technology, nor do they rely on
marketing to support their business. Some of
PLI’s scientists can differentiate products on the
component level, not only on the additive level.
This is an expensive process and a skill that most
lubricant businesses do not employ, he says.
When asked about the best part of his
job, Holthusen cites the way that marketing,
technology, and sales are all part of one function.
Working alongside experts in marketing, as well
as in manufacturing engineering, is a close-knit
and streamlined way to do business. He says,
“I can basically design the whole portfolio and
have it in my hands.”
Holthusen is positive that PLI will reach the
“magic circle.” He admits that it is not alone in
having an impressive array of technology and
expertise. But, he said that among those who
come from an international oil industry back-
ground, “We’re convinced that we are the best.”
Most national companies do not have the
global footprint that PLI has, but the PLI
management wants to make that footprint even
larger and deeper. It needs to increase its reach
in areas where it is not present. It needs to gain
new customers as well as maintain its relations
with its current ones. And with the committed
support of its parent company, PETRONAS, it
has a good chance of achieving most of what
it has set out to do, with the energy, industry
know-how and connections, and technical
expertise of its new COO.
Holthusen understands that with global
thinking and expansion comes new expertise
that the company can use in new and
unexpected ways. If it continues to push its
limits in this way, Holthusen has no doubt that
by 2018 PLI will be in the magic circle.
As partof ourgrowthagenda, we needtosecure
manufacturing facilities instrategic locations to
enhanceour supplyanddelivery setup. Wherewe
needone butdon’thaveoneor can’t buyone,
we are preparedtobuildoneourselves.