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Gulf Oil Corporation enters Chinese Market
The Board
of GULF OIL Corporation Limited, as its meeting held on
20th
April 2005,
approved the acquisition of 51% of GULF OIL Yantai (Co) Ltd.
This is the third overseas foray of the company in the last 2
years, after GULF OIL Bangladesh and PT. GULF OIL Indonesia
and furthers the Company’s policy of expanding into
neighboring growth markets. With the commissioning of this
plant, GULF OIL and its associate companies will have a total
manufacturing capacity of more than 200,000 tons in the
region.
China,
with a lubricant market potential of 4.3 million tpa,
approximately 3.3 times India’s market, is in the world’s top
five largest lubricant markets and is expected to grow at the
rate of 5% to 5.5 Million tons in 2010 and to 6.3Million tons
in 2013. GULF OIL Yantai, currently catering to some
provincial markets, is now excepted to be marketing all over
China to get to at least 5% of the market in the next
3-4years.
Gulf Oil
Yantai Co Ltd is a company started in 1996 and has
manufacturing and marketing operations in Yantai city,
Shandong Province of China. The new capital infusion will be
used to build up a new manufacturing facility in Yantai with a
capacity of 30,000MT per annum. The new factory will be
located in an economic zone with tax benefits. With large base
oil storage capacity in the new factory, GULF OIL will use
this plant to supply to nearby countries like
Taiwan,
S. Korea, Vietnam and Japan, as well as aggressively trade in
base oils in
China.
Commenting on the new venture, Subhas Pramanik, Managing
Director of GULF OIL Corporation Limited, said that this
acquisition is in line with GULF Oil’s policy of aggressively
expanding into growing markets of Asia Pacific, using Indian
technical and managerial expertise and the world-famous GULF
brand. He also said that the plan is to have strategically
located manufacturing plants across the Asia Pacific to cater
to the growing lubricant market in the Asia Pacific. He also
stated that the Company is looking into the possibility of
further forays in to the regional markets to consolidate the
position of GULF brand in the Asia Pacific Region, with
India as
the hub.
For GULF
OIL Corporation Limited,
S.
Pramanik
Managing
Director
Date:
20.04.2005
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