Gazpromneft-Lubricants mulls purchase of production facility in Northern Europe

Gazpromneft-Lubricants, a unit of Russia’s oil major Gazprom Neft, is considering buying a manufacturing facility in Northern Europe to expand production. The decision could be made by mid-year.
“The company may consider facilities in Finland or in the Baltic states,” said CEO Alexander Trukhan.
“The expected production capacity of a potential asset should amount to 30,000 tonnes of products per year,” he said.
The cost of a new facility in Europe will cost around US$40–50 million, he said.
The company plans to increase lube output by 40% to 633,000 tons by 2025. Its goal is to boost its share of the domestic market from 14% to 18% by 2025.
Meanwhile, Gazpromneft-Lubricants has postponed its earlier plan to enter the Chinese market as China’s current tax system prevents the exports of finished lube products, he said.