UMW to sell Repsol lubricants in Asia

Spain’s Repsol YPF Lubricantes Y Especialidades, S.A. has reached an agreement with Malaysia’s UMW Group to produce and distribute the Repsol brand of lubricants throughout Asia. This includes the automotive, motorcycle and industrial lubricating oils and ancillary products, excluding marine oils manufactured or sold, by REPSOL. Two subsidiary agreements covering distributorship in China, Malaysia, Singapore, Brunei, Papua New Guinea and Myanmar were also signed. The deal, which is part of Repsol’s international branding expansion plan, has an initial term of five years. Lubricant sales are expected to reach 20,000 tons per year by the end of this period. Meanwhile, UMW is investing some 15 million ringgit (US$4.77 million) to strengthen its Pennzoil lubricant distribution business and establish itself in the international lubricant arena. UMW bought 30% shares in Lubetech Sdn Bhd (LSB) for 5.9 million ringgit (US$1.88 million) and 50% stake in UMW Pennzoil Distributors Sdn Bhd (UPD) for 9.1 million ringgit (US$2.9 million) from Pennzoil-Quaker State Co. (PQSC). Upon completion of the acquisitions, LSB and UPD will become its wholly owned units, UMW said in a statement. (December 2, 2010)