Veredium to expand operations

Local petroleum technology company Veredium Energy Ventures Inc. (VEV) said it plans to invest about Php100 million (US$2.07 million) over the next two years for expansion of its downstream operations. The investment, the company said, will cover the company’s intensive marketing campaign in the Philippines for Italian engine oil brand Agip. VEV is the exclusive distributor of Agip lubricants and the exclusive partner of BASF AG for performance chemicals in the Philippines. In the long term, the company said, it may set up a blending plant in the country. In the next two years, Veredium said it will target to expand its distributorships of Agip products in Luzon, Visayas and Mindanao. The company also started the construction of its warehouse in Iligan, which is also part of its expansion program. While the president and chief executive officer of Veredium Energy Ventures Inc. decline to give the possible investment for the blending plant construction, he said that for a 15 million liter blending facility it was estimated to cost US$500,000. Veredium targets to capture 5% or least 15 million liters per annum sales of the 156 million liters total industry market. (May 20, 2009)