Castrol India to close Tondiarpet plant

Castrol India said it will close its Tondiarpet plant in Chennai, Tamil Nadu, effective July 31. The employees of the plant have been offered a voluntary retirement scheme. Industry sources said the company decided to close one of the company’s oldest plants due to the high landed cost of base oil, which caused manufacturing costs to become prohibitive. The company said it will decide what to do with the plant, machinery and the land at a later date. Castrol India holds the number two position in the Indian lubricant industry and is the market leader in the retail segment for automotive lubricants. (July 16,2011)