Petronas Lubricants expands lube blending plant in Shandong, China

Petronas Lubricants International (PLI), a subsidiary of Malaysia’s state-owned oil and gas company Petronas, has expanded its lubricant-blending plant in the Weifang Economic Development Zone in Shandong, China, to meet the growing demand for premium lubricant products.

The expansion project, which was carried out in phases, saw the upgrading of the plant’s production capacity, production lines and storage facilities, boosting the company’s ability to serve the Chinese market.

The second phase of the expansion in Shandong created additional production capacity needed to meet soaring demand in China, according to Datuk Wan Zulkiflee Wan Ariffin, Petronas president and group CEO.

“Naturally, this will also infuse our marketing and sales operations with a major boost of new energy to pull away from the pack,” he said.

“This strategic expansion of our footprint in China reflects the great importance we attach to our local customers, here, as well as our confidence in Petronas’s prospects for future growth in the Chinese market,” he added.

Petronas Lubricants International invested RMB600 million (USD138.14 million) to expand the plant’s footprint to 21,000 square metres. The complex now includes an automated, hi-tech lubricant blending line, as well as additional storage tanks.

The plant’s annual output will also increase from 45,000 to 150,000 tonnes after the expansion, and will be able to produce a broader range of products, including automotive lubricants, anti-freeze, industrial lubricants and lubricating greases.

“The expansion also saw an upgrade of the plant’s warehouse facilities to enhance capabilities for storage, transportation, local distribution and overseas export,” he said.