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Petronas Opens Newly Expanded Lubricant Plant in Shandong, China

Petronas Lubricant Plant China

Petronas Lubricants International (PLI) recently launched the newly expanded lubricant-blending plant in the Weifang Economic Development Zone in Shandong, China to meet the market’s growing demand for premium lubricant products and high-quality services. 

Petronas Inaugurates Newly Expanded Lubricant Plant in Shandong, China

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

Petronas President and Group CEO Datuk Wan Zulkiflee Wan Ariffin, who officiated the new plant opening, said: “The second phase expansion at our Shandong plant adds much-needed production capacity that will help us meet the soaring demand for our products. Naturally, this will also infuse our marketing and sales operations with a major boost of new energy to pull away from the pack. 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’ prospects for future growth in the Chinese market.”

The plant’s officiating ceremony was also attended by Petronas Executive Vice President and CEO of Downstream Business Md Arif Mahmood, Petronas Lubricants International (PLI) Group CEO Giuseppe D’Arrigo and PLI Head of Regional Business (Greater China) Mark Gau.

To optimise services and offer customers a complete range of premium solutions, Petronas invested RMB600 million (RM384 million) to expand the plant’s footprint to 21,000 square metres to now include an automated, hi-tech lubricant blending line as well as additional storage tanks.

Its annual output is expected to increase from 45,000 to 150,000 tonnes, covering a wide range of automotive lubricants, anti-freeze liquids, industrial lubricants and greases. The expansion also saw an upgrade of the plant’s warehouse facilities to enhance capabilities for storage, transportation, local distribution and overseas export.

Petronas says improving the capabilities of the Shandong Plant not only allows for increased production capacity to satiate consumer demands, it is also testament to its commitment to the rapidly developing Chinese market. Aside from lubricant production, Petronas is also actively growing its liquefied natural gas (LNG) business while looking to expand the LNG volume supply to existing buyers in the country.

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