Idemitsu to start lube manufacturing in Vietnam

Japan’s Idemitsu Kosan Co. said it would start blending lubricating oil in Vietnam from January 2014, to tap growing demand for motorcycle engine oil in the country.
Idemitsu has established a wholly owned subsidiary in the northern city of Hai Phong, Idemitsu Lube Vietnam Co. The company, with a capital of US$23.3 million, will oversee the company’s lube manufacturing, which will have an output of 35,000 kiloliters a year. Total lube sales in Vietnam reached 350,000 kiloliters last year. Sales are expected to reach 530,000 kiloliters by 2020.
Idemitsu currently sells 3,000 kiloliters of lubes manufactured by a local third-party toll blender. It is targeting sales of 20,000 kiloliters by 2015.