Lukoil eyeing construction of lubricants plant for supplies to South-East Asia
TORZHOK. Oct 3 (Interfax) - Lukoil is looking into building a new lubricant production facility for supplies to markets in South-East Asia, Maxim Donde, the general director of LLC LLK-International, a 100% Lukoil subsidiary in charge of lubricant output and sales, said at a meeting on the development of lubricant production in Russia.
"We are approaching a situation in which the amounts that we will sell on the South-East Asian markets are coming close to needing a justification of investments in our own factory," he said.
Lukoil also intends to enter the Chinese lubricant market, as well as work on further developing a "ship program," Donde said.
At present, Lukoil delivers lubricants to markets in Western Europe from its plant in Finland, to Eastern European markets from its plant in Romania, and to Middle Eastern markets from his plant in Turkey.
"In the lubricants business, you can't be a regional player. The market dictates that you can either be big or the market will squeeze you out," Donde said.
