JV Will Make Repsol Lubes in Indonesia

An Indonesian blending plant partly owned by Repsol will begin producing the companys lubricants by April. The Spanish company plans to expand the plant and to sell those products in regional and local markets, a company spokesman told Lube Report.

Last September, Repsol agreed to purchase a 40 percent equity stake in lubricant manufacturer United Oil, and the agreement was completed in November. United Oil has two lubricant blending plants – the Indonesia facility, which has production capacity of 80,000 metric tons per year, and a 60,000 t/y plant in Singapore. The Indonesia plant is operated by subsidiary PT Pacific Lubritama Indonesia.

We plan on increasing the [Indonesia] plant capacity, the Repsol spokesman said. We are adding more production lines, new laboratory equipment, increasing warehouse capacity, and aim to get new [ISO] certifications. The company did not disclose details.

We are upgrading the plant, and we intend to have state-of-the-art facilities that guarantee that we are able to produce up to our standards in the most efficient and consistent way, he added. The plant will produce Repsols entire range of industrial oils and diesel engine oils for Singapore, Indonesia, Malaysia and Vietnam.

One of our aims with this joint venture is to open new market segments for Repsol in the region. More than 50 percent of our sales in Spain are of industrial lubricants, and our footprint in this segment in Asia Pacific is still very far from that. We have the products and the know-how, and now, with a more efficient logistics and costs that are more in line with the market thanks to local production, we will be able to provide our products with a good service level and at competitive prices, the spokesman said. Major industrial lubricant players in Indonesia include Shell, Pertamina, Idemitsu and Yushiro.

Indonesia is the third manufacturing hub for Repsol. The company has one each in Spain and Mexico. Repsol aims to be a top-five player in Indonesia, the company said in a press release last year.

Photo courtesy of Repsol