GS Caltex and Samsung tie up to enter Chinese lube market

South Korean refiner GS Caltex signed an agreement with Samsung C&T Corp., a major South Korean trading and construction company, to jointly enter the Chinese industrial lubricants market. A statement said that the two companies plan to push for the business to sell industrial lubricants to Chinese companies in the steel, textile and chemical sectors, via the five vendors of Samsung C&T in China. The Chinese lubricant market is estimated at 12 trillion won (US$10.3 billion) , GS Caltex said. In August, GS Caltex also signed a deal with Hankook Tire Co., South Korea’s largest tire maker, to cooperate on making inroads into the Chinese car lubricant market. With the deal with Samsung C&T, GS Caltex hopes to expand the ratio of its lubricant exports to oil products to 50%, from the current 20%. (November 23, 2010)