In December 2011, Japan's largest refiner, JX Nitrate Nisshin Energy Co. (hereinafter referred to as JX), proposed to reorganize the lubricant production system in China, Japan, and South Korea. Through reprogramming to increase efficiency and enhance production capacity, the company will lubricate overseas. Oil sales increased from 380,000 tons in 2010 to 700,000 tons in 2015 and 900,000 tons in 2020.
JX invested 28 billion yen in August this year, and cooperated with SK Oil of South Korea to build a 1.35 million tons Base Oil plant in Ulsan, South Korea. It is expected that it will begin production in July 2012. At the same time, the investment of 3 billion yen will increase the basic raw material supply capacity of the Okayama Oil Works in Japan by 20% or more, and will provide basic materials to the JX Korea factory. The base oil produced by the JX Korea factory will be imported into Japan and processed into finished products in Japan. Lubricants are exported to Europe, the United States, and China.
JX has three lube oil finished products factories in China. With the increase in the demand for cars in China, a large number of Japanese cars are expanding sales in China. In order to quickly occupy the ever-expanding Chinese lubricants market, JX plans to further increase the production capacity of Chinese factories. The Guangzhou factory with an annual output of 28,000 tons of lubricants will become the preferred target.
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