Repsol is to buy a 40% stake in the Singapore-based lubricants maker United Oil Company as part of plans to expand its downstream footprint in Southeast Asia.
United Oil Company will manufacture and supply Repsol’s brand of products in Singapore, Indonesia, Malaysia and Vietnam under a new joint venture which will upgrade its existing manufacturing plant in Indonesia and expand the network of dealers and distributors through a sales and marketing drive, aiming to be a “top-five player” in Indonesia.
United Oil has two lubricants plants, in Singapore and Indonesia, with a total capacity of 140,000 mt/year.
Repsol’s lubricants business aims to double its sales volume to 300,000 mt/year, with 70% from outside Spain.
